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law of diminishing marginal returns and the law of diminishi

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Explain the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution?

Can you help me find some examples to prove the difference?

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Solution Summary

According to the law of diminishing marginal returns, if we add more of one input, say labor, the margin product will eventually fall.

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Law of diminishing marginal returns:

According to the law of diminishing marginal returns, if we add more of one input, say labor, the margin product will eventually fall.
In other words, In a production system, having fixed and variable inputs, keeping the fixed inputs constant, as more of a variable input is applied, each additional unit ...

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Sandeep Bardia, MBA
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  • MBA, Rochester Institute of Technology
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