Another example is a factory that has a fixed stock of capital, or tools and machines, and a variable supply of labor. As the firm increases the number of workers, the total output of the firm grows but at an ever-decreasing rate. This is because after a certain point, the factory becomes overcrowded and workers begin to form lines to use the mach...
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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.
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economic law stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually ... [2 related articles]
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When the addition of a variable factor of production results in a fall in marginal product. Diminishing returns refers to a situation where a firm is trying to expand by using more of its variable factors, but finds that the extra output they get each time they add one gets progressively less and less. This usually arises because their capacity is ...
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http://www.encyclo.co.uk/local/20140
When the addition of a variable factor of production results in a fall in marginal product. Diminishing returns refers to a situation where a firm is trying to expand by using more of its variable factors, but finds that the extra output they get each time they add one gets progressively less and less. This usually arises because their capacity is ...
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http://www.encyclo.co.uk/local/20414
The phenomenon where increases in variable inputs to a process results in smaller and smaller returns.
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any rate of profit, production, benefits, etc., that beyond a certain point fails to increase proportionately with added investment, effort, or skill. · Also calledthe fact, often stated as a law or principle, that when any factor of production, as labor, is increased while other factors, as capital and land, are held constant in amount, th...
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https://www.infoplease.com/dictionary/diminishing-returns
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