The law of diminishing marginal returns states that as the input of one factor of production is increased while keeping the amounts of other factors constant, the resulting increase in output will eventually become less proportionate. In other words, after a certain point, each additional unit of input will yield smaller and smaller increases in output. This law suggests that there is a limit to the efficiency gains achieved by adding more of a particular input.
The law of diminishing marginal returns, also known as the law of diminishing marginal productivity, states that as more units of a specific input are added to a production process, while holding all other inputs constant, the increase in output or productivity per additional unit of input will eventually decrease. In other words, the law suggests that there is a point at which the productivity gained from adding additional units of input becomes less efficient or effective. This law is a fundamental concept in economics and has several implications for production and resource allocation decisions.
