diminishing returns

(redirected from Law of diminishing marginal return)
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Related to Law of diminishing marginal return: Marginal product, Law of Diminishing Marginal Utility

di·min·ish·ing returns

(dĭ-mĭn′ĭ-shĭng)
pl.n.
A yield rate that after a certain point fails to increase proportionately to additional outlays of capital or investments of time and labor.

diminishing returns

pl n
1. (Economics) progressively smaller rises in output resulting from the increased application of a variable input, such as labour, to a fixed quantity, as of capital or land
2. (Economics) the increase in the average cost of production that may arise beyond a certain point as a result of increasing the overall scale of production

dimin′ishing returns′


n.
any rate of profit, production, benefits, etc., that beyond a certain point fails to increase proportionately with added investment, effort, or skill.
[1805–15]
References in periodicals archive ?
The law of diminishing marginal returns states that as units of a variable input are added to units of one or more fixed inputs, after a point, each incremental unit of the variable input produces less and less additional output.