Expert: Chen Min - 2/17/2011

Question
HI, I just want to ask on how to find the the point of diminishing return if you are given the the total volume(in boxes) and total number of store outlets in a certain industry.
Say for example, store outlets are on the x-axis and volume is in y axis.In the law of diminishing return, the more store outlets u coveres, there will be an increase in volume but the rate is decremental. Below are the values of outlets and volume:
    Total Store Outlets = 15,020
    Total Volume = 17099

Please help me in find the point of diminishing return. Thanks

Ishimi

Answer
I wonder who gave you this question. It is clearly not solvable to me.

If you treat the two variables' relation as a function (shown as a curve in your axis), the PODR is at the point where dy/dx is maximum,(and hence the rate after will be decreasing), which is when d^2y/dx^2 = 0. Merely giving me the total number of both variable is not gonna aid me in anyway to get a peek at the property of the curve.