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Diminishing marginal returns (view source)

Revision as of 22:28, May 20, 2007

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New page: Diminishing marginal returns consist of the inevitable point beyond which additions of a variable factor (input) will yield diminishing marginal returns (output) per unit of the variable f...
Diminishing marginal returns consist of the inevitable point beyond which additions of a variable factor (input) will yield diminishing marginal returns (output) per unit of the variable factor. All other factors of production are held fixed for this analysis.

Note that at first there may be increasing marginal returns, and this principle about diminishing marginal returns expresses what will be inevitably reached.

[[Category:Economics]]
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