What is Diminishing Returns
In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal. The law of diminishing returns states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input. The law of diminishing returns does not cause a decrease in overall production capabilities, rather it defines a point on a production curve whereby producing an additional unit of output will result in a loss and is known as negative returns. Under diminishing returns, output remains positive, but productivity and efficiency decrease.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Diminishing returns
Chapter 2: Profit maximization
Chapter 3: Marginal cost
Chapter 4: Cobb-Douglas production function
Chapter 5: Production function
Chapter 6: Marginal product
Chapter 7: Isoquant
Chapter 8: Returns to scale
Chapter 9: Marginal revenue
Chapter 10: Backpropagation
Chapter 11: Marginal revenue productivity theory of wages
Chapter 12: Cost curve
Chapter 13: Solow-Swan model
Chapter 14: Supply (economics)
Chapter 15: Bootstrapping (finance)
Chapter 16: Production (economics)
Chapter 17: Marginal product of capital
Chapter 18: Marginal product of labor
Chapter 19: Marginal utility
Chapter 20: AK model
Chapter 21: Robinson Crusoe economy
(II) Answering the public top questions about diminishing returns.
(III) Real world examples for the usage of diminishing returns in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Diminishing Returns.
