diminishing returns, law of

diminishing returns, law of
Economic law stating that if one input used in the manufacture of a product is increased while all other inputs remain fixed, a point will eventually be reached at which the input yields progressively smaller increases in output.

For example, a farmer will find that a certain number of farm labourers will yield the maximum output per worker. If that number is exceeded, the output per worker will fall.

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Universalium. 2010.

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  • law of diminishing returns — ➔ diminishing returns * * * law of diminishing returns UK US noun [S] (also law of marginal returns) ► ECONOMICS the principle that after a certain point more work, investment, etc. produces smaller and smaller improvements or results: »None of… …   Financial and business terms

  • diminishing returns — diˌminishing reˈturns noun [plural] ECONOMICS 1. the idea that a point can be reached where the advantage or profit you are getting stops increasing in relation to the effort you are making: • By the mid 1990s, cost cutting and restructuring were …   Financial and business terms

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  • law of diminishing returns — noun a law affirming that to continue after a certain level of performance has been reached will result in a decline in effectiveness • Hypernyms: ↑law, ↑law of nature * * * : a principle in economics: at any given stage of technological advance… …   Useful english dictionary

  • diminishing returns — 1. any rate of profit, production, benefits, etc., that beyond a certain point fails to increase proportionately with added investment, effort, or skill. 2. Also called law of diminishing returns. Econ. the fact, often stated as a law or… …   Universalium

  • diminishing returns — I. noun plural : a rate of yield that at a certain point fails to increase in proportion to additional investments of labor or capital see law of diminishing returns II. noun plural : benefits that beyond a certain point fail to increase in… …   Useful english dictionary

  • law of diminishing returns — Econ. See diminishing returns (def. 2). * * * …   Universalium

  • diminishing returns — /dəˌmɪnɪʃɪŋ rəˈtɜnz / (say duh.minishing ruh ternz) plural noun 1. the decreasing profit, output, gain, etc., that beyond a certain point is the inevitable result, despite the continued effort, resources, etc., put in. 2. Economics See law of… …  

  • diminishing returns — ► (the law of) diminishing returns the principle that as expenditure or investment increases each further increase produces a proportionately smaller return. Main Entry: ↑diminish …   English terms dictionary

  • lawof diminishing returns — law of diminishing returns n. The tendency for a continuing application of effort or skill toward a particular project or goal to decline in effectiveness after a certain level of result has been achieved. * * * …   Universalium

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