What is the principle that is basically the law of diminishing returns

Concerning the law of diminishing returns, only one factor at a time is considered.The law of diminishing returns occurs when there is a decrease in the marginal output of the production process as a consequence of an increase in the amount of a single factor of production, while the amounts of other parameters of production remain constant.The law of diminishing marginal returns goes by a number of different names, including law of diminishing returns, principle of diminishing marginal productivity and law of variable proportions.Thus, it can be identified by taking the second derivative of that return function.Increasing the number of lathe machines to 15 might increase production by a small margin as the number of workers and hand planes remains the.Economy of scale is the idea that as output.

The law of diminishing returns is always past the optimization level for a product.In agriculture, the law of diminishing returns sets in at an early stage because one very important factor, i.e., land is a constant factor there and it cannot be increased in right proportion with other variable factors, i.e., labor and capital.At any given stage of technological advance an increase in productive factors (as labor or capital) applied beyond a certain point fails to bring about a proportional increase in production.The law of diminishing returns plays a huge part in the theory of population and the theory of rent as we understand them today.The meaning of law of diminishing returns is a principle in economics:The law of diminishing returns.