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Law of diminishing returns

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Describe in your own words the law of diminishing marginal returns.

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Solution describes the law of diminishing returns with the help of suitable graph in about 250 words.

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Solution:

Law of diminishing return says that as we increase one input keeping other inputs constant, marginal product of varying input will start decline after some point.

In the following graph, varying input units are displayed on the X axis and output is shown on Y axis. As we see that as we increase units of varying input X keeping the other inputs constant. We observe that Marginal product starts ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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