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My graph may not be completely correct. But it is enough to understand. The white graph is showing the amount of damage reduction you get by buying armor or magic resistance. As you can see: The more resistance you already have the less damage reduction you get by buying more armor or magic resistance. The break through (the point where it isn't recommended to buy more armor or resistance) is at about 150 (the marked area on the picture). At this point it is much more useful to go for life points.
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