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Increasing And Diminishing Returns |
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Increasing And Diminishing ReturnsAn economic theory that an increase in capital or manpower will not increase production proportionately (five workers may do less than five times the work of one worker; and two workers may do more than twice the work of one worker). When the increase in production is proportionately greater than the addition, there is an increasing return, when production is proportionately less than the addition. the return diminishes.Increasing And Diminishing Returns Similar MatchesLaw of Diminishing ReturnsLaw of Diminishing ReturnsThe principle that, in any production function, as the input of one factor rises holding other factors fixed, the marginal product of that factor must eventually decline. Diminishing returnsDiminishing returnsThe fall in the marginal product of a factor or factors that eventually occurs as input of that factor rises, holding the input of at least one other factor fixed, according to the Law of Diminishing Returns. |
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