Diminishing Returns graph (wikipedia.org)
Definition
Law of Diminishing Returns (also called Law of Variable Proportions 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]
See Also
Law of Comparative Advantage
Law of Demand
Law of Diminishing Marginal Utility
Law of Diminishing Returns
Law of Effect
References
- American Marketing Association, AMA Dictionary.