When does the law diminishing returns kick in?


As I go through these threads reading responses I will look at the systems from answer writers. Wow, some of you guys don't mess around. As a music lover and audio guy myself (since the late 60s) I can't help but be envious.
Although my system is modest, especially compared to some, I get a lot of enjoyment listening to music on it. It took a while and a lot of trial and error to get what seems right to me. But when looking at the super systems here it makes me wonder what I'm missing. With the exception of deeper bass, am I missing all that much? How much would I have to spend to hear real (worthwhile) improvement?
timrhu

Showing 2 responses by mrtennis

in economic terms, production is optimal when mr=mc, i.e., marginal revenie - marginal cost.

in audio it means if you spend an additional dollar to attain less than a dollar's worth of sonic improvement, diminishing returns has been achieved.

this is subjective of course. but i think, i have defined, literally what diminishing returns means.

it is a term used in economics quite frequently as most corporations try to maximize profit.

if you produce too much the additional cost of production will exceed the additional revenue.

in audio , if you spend too much, the additional benefit in sound is not cost justified--subjectively speaking of course.

its almost a corrolary of the famous equation:a sale occurs when the value in use = the value in exchange.

the value in use , could translate into the value placed upon the sound of a a component.
keep it simple. it's basic economics 101. each person has an optimal price to pay for a component. when you exceed that price, your returns have diminished , relative to the cost of the component.