ECONOMICS

Detailed explanation-1: -The law of diminishing returns refers to increasing one input in a production process while other inputs remain constant. As each new unit of the increasing input is added, the marginal output gets smaller.

Detailed explanation-2: -The reality that output will decline as more of one input is added is referred to a diminishing marginal productivity. The challenge is to determine the level of input that will maximize profit, rather than maximize production. A common business goal is to earn a profit.

Detailed explanation-3: -Diminishing marginal returns occur when the increased input in the short run after an optimal capacity has occurred.

Detailed explanation-4: -The law of diminishing marginal productivity states that when an advantage is gained in a factor of production, the productivity gained from each subsequent unit produced will only increase marginally from one unit to the next.

Detailed explanation-5: -Diminishing returns are due to the disruption of the entire production process as additional units of labor are added to a fixed amount of capital. The law of diminishing returns remains an important consideration in areas of production such as farming and agriculture.