Law of Diminishing Marginal Returns
I attended the Mountain Plains Business Conference and had the opportunity to hear Doctor Tufte's presentation, titled "Models and Growth of Faiths and Their Faithful." He related the growth of faiths or organizations promoting beliefs to the Solow Growth Model. One of the questions was, "What does the model tell us about faiths' adherent growth rate?" The point was made that a faith that encourages adherant growth will have to compensate with more mission work, or in economic terms, more capital. I thought the point interesting, and thought about the LDS missionary system. The LDS church actually increased the number of missionaries (capital) in an effort to gain more converts (output), but what they found was the law of diminishing marginal returns. They reached a certain point where the additional output gained from an additional missionary began to decline. So now, the church has reduced the number of missionaries back to the point where marginal product is still growing. This goes to show that economics can be applied almost everywhere.
Posted by Ann at 10/14/2005 11:24:00 AM