Law of diminishing returns

law of diminishing returns
Dictionary: law of diminishing returns
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Law of diminishing returns: a rule stating that as one factor of production is increased while others remain constant, the extra output generated by the additional input will eventually fall.

The law of diminishing returns is significant because it is part of the basis for economists' expectations that a firm's short-run marginal cost curves will slope upward as the number of units of output increases.

Law of Diminishing Returns
The 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.
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Short Run Average cost curves tend to be U shaped because of the law of diminishing returns.

Diminishing returns
The 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.

Marginal revenue is calculated by dividing the change in total revenue by the change in output quantity. While marginal revenue can remain constant over a certain level of output, it follows the law of diminishing returns and will eventually slow ...

Even for those that had network effects, it need not be, and generally was not, true that the network effects would be strong enough to convert an otherwise typical firm facing the law of diminishing returns into an increasing-returns firm.

In each case the preference for tillage, as an occupation, has rendered it comparatively easy to keep the people on the land; but there is some reason to believe that the law of diminishing returns is already making itself felt, ...

See also: Diminishing returns, Diminishing return, Population, Productivity, Crisis