diminishing returns, law of

diminishing returns, law of

Economic law stating that if one input used in the manufacture of a product is increased while all other inputs remain fixed, a point will eventually be reached at which the input yields progressively smaller increases in output. For example, a farmer will find that a certain number of farm labourers will yield the maximum output per worker. If that number is exceeded, the output per worker will fall.

This entry comes from Encyclopædia Britannica Concise.
For the full entry on diminishing returns, law of, visit Britannica.com.

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