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

3923 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What are the Macroeconomic Effects of Currency Fluctuations?


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


What is the impact of a rise in national minimum wage on the labour market?


What are the determinants of Demand? What is the effect of a change in the determinants of demand?


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