What is the law of diminishing returns?

The law of diminishing returns is when the marginal output of a production process decreases with every additional increase in a factor of production (or input), holding all other factors of production constant. 

SS
Answered by Shyam S. Economics tutor

4014 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is price elasticity of demand and how does it affect equilibrium prices and quantities?


Evaluate the benefits of using fiscal policy to stimulate economic growth


Explain what you understand by the Lorenz Curve and Gini Coefficient.


Perfect competition theory is based on very unrealistic assumptions. Evaluate whether such a theory is useful in explaining the behaviour of real world firms.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning