Definition of law of diminishing returns
Noun
law of diminishing returns
- The tendency for a continuing effort toward a particular goal to decline in effectiveness after a certain amount of success has been achieved.
- (economics) A relationship between input and output, such that adding units of any one input (labour, capital etc.) to fixed amounts of the others will yield successively smaller increments of output.
References:
- Wiktionary. Published under the Creative Commons Attribution/Share-Alike License.
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