Law of Diminishing Returns

law of diminishing returns

Diminishing Returns graph (


Law of Diminishing Returns (or Principle of Diminishing Marginal Productivity) is an economic concept which states that after a certain point has been reached – the point of diminishing returns – each successive application of a factor of production will add less to total output than before.[1]

For more information, see Wikipedia on diminishing returns.



  1. ^ American Marketing Association, AMA Dictionary.

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