Law of Diminishing Marginal Returns: Definition, Example, Use in Economics

Описание: The law of diminishing marginal returns predicts that after some optimal level of capacity is reached, adding an additional factor of production will result in smaller increases in output. This law is a fundamental principle of economics and production theory, with ties to some of the earliest economists. It can be contrasted with economies of scale and is a crucial concept in understanding the relationship between input and output in economics.
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