GENERAL KNOWLEDGE

Detailed explanation-1: -“An increase in the Capital and Labour applied in the cultivation of land causes, in general, less than proportionate increase in the amount of produce raised unless it happens to coincide with an improvement in the art of agriculture.”

Detailed explanation-2: -Alfred Marshall stated the law thus: “An increase in labour and capital applied in the cultivation of a land causes, in general, a less than proportionate increase in the amount of produce raised, unless it happens to coincide with an improvement in the arts of agriculture”.

Detailed explanation-3: -According to Marshall, the law of diminishing returns applies only to .

Detailed explanation-4: -History of the law of diminishing returns Classical economist David Ricardo referred to the law as the intensive margin of cultivation. He used it to show how additional labor and capital added to a fixed piece of land generates successively smaller increases in output.