Diminishing returns
In economics, diminishing returns is the short form of diminishing marginal returns. In a production system, having fixed and variable inputs, keeping the fixed variables constant, as more of a variable input is applied, each additional unit of input yields less and less additional output. This concept is also known as the law of increasing opportunity cost.
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~ Table of Content ~
| ► | Introduction |
| ► | A simple example |
| ► | A law? |
| ► | Returns to scale |
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