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.

Seen & Heard

What made you look up diminishing returns, law of? Please tell us what you were reading, watching or discussing that led you here.

Get Our Free Apps
Voice Search, Favorites,
Word of the Day, and More
Join Us on FB & Twitter
Get the Word of the Day and More