What does the law of diminishing state

Answer 1

The law of diminishing returns, also known as the law of diminishing marginal returns, states that as one input is added while keeping all other inputs constant, there will be a point where the marginal output or benefit obtained from that input will decrease. In other words, adding more of a variable input to a fixed amount of other inputs will eventually result in a decrease in the additional output or benefit produced. This concept is important in economics and production theory, as it helps to explain how resources are allocated and used efficiently in the production process.