Point of diminishing returns

if the value in use equals the value in exchange, there is no point of diminishing returns.

as price increases, there is some point when the value in exchange exceeds the value in use.

another words, someone will continue to pay more and more for a component until he/she perceives that a component is overpriced.

there is no absolute number. for some a $2000 preamp is the point of diminishing returns, while for others it may be $5000. in any case, it is subjective.

for the mathematicians out there when the rate of change of value with respect to the rate of change of price begins to decrease, the point of diminishing returns is reached.

there is no absolute answer.

also, someone may be willing to upgrade , paying 50 % more in price to get a 10 % improvement, because it is worth it to that person.

we are all forgetting an important consideration, namely priority or valence.

what is the value placed upon listening to music, i.e., how important is it to really enjoy the music in comparison to other activities in life ?

if audio/music is very important improvements in sound will be more highly valued, than, as an example, an improvement in the experience of watching a dvd.

ultimately the point of diminishing returns depends upon the relative importance of an activity and the value placed upon the quality and quantity of an improvement.