Thread:ClariS/@comment-3017217-20141026134417/@comment-4881935-20141030184437

Ntoulinho wrote: Also I don't fail to understand the difference between 'difference of output' from 'ouput' I believe that it is the ratio and not the difference that gives us the Function

X=Armour Y=Effective health multiplier

not   O2 - O1but  O 2  / O 1.

I do not have a belief that output will always share the same ratio with input it is an expectation if there are constant returns and the factor to determine the returns a process gives based on the graph.

Everything you said here is basically why you need to learn both. Dimishing return has very little to do with what you just said. As I told you, dimishing return exist if "THE RATE OF CHANGE DECREASES OVER TIME", in other words, "DIMISHING RETURN IS BASED ON THE RATE OF CHANGE OF THE RATE CHANGE" <--not a typo.

So I fear that even if you learn what marginal output is, I still think you will do this type of equation: Ii - I = Oi - O constant returns

Ii - I > Oi - O diminishing returns

Ii / I < Oi - O increasing returns which is still wrong.

If I had to use a metorphor, it would be something like, speed is how fast you are moving. Velocity is the rate of change of speed, and accerlation is the rate of change of speed. In a distance equation, what would determine if it has dimishing return is if the acceleration is between -1 and 1. It does not matter how fast you are traveling, or if your incrasing your speed overrall, if your velocity is decreasing over time, than you have dimishing return.