What is the law of diminishing returns example?

For example, a worker may produce 100 units per hour for 40 hours. In the 41st hour, the output of the worker may drop to 90 units per hour. This is known as Diminishing Returns because the output has started to decrease or diminish.

What is diminishing returns on a graph?

Diminishing Returns Graph The graph highlights the concept of diminishing returns by plotting the curve of output against input. The areas of increasing, diminishing and negative returns are identified at points along the curve.

What is law of diminishing returns explain it with the help of suitable diagram?

The law of diminishing returns states that an additional amount of a single factor of production will result in a decreasing marginal output of production. The law assumes other factors to be constant.

What is the law of diminishing rate of return?

The law of diminishing marginal returns states that adding an additional factor of production results in smaller increases in output. After some optimal level of capacity utilization, the addition of any larger amounts of a factor of production will inevitably yield decreased per-unit incremental returns.

Which statement best illustrates the law of diminishing returns?

The correct answer is(b) As study hours increase, the amount of learning Will increase at a diminishing rate.

What are the importance of law of diminishing returns?

The law of diminishing returns is significant because it is part of the basis for economists’ expectations that a firm’s short-run marginal cost curves will slope upward as the number of units of output increases.

How do you graph law of diminishing returns?

In the Law of diminishing return graph the units of labour are measured along X-axis while the Total and Marginal production is measured along Y-axis. The total production (TP) curve is represented by NRS while NUL represents the, Marginal Production (MP) Curve.

What are the 3 stages of returns?

The three stages of returns are:

  • Increasing returns.
  • Diminishing returns.
  • Negative returns.

What is law of diminishing returns Class 11?

Law of diminishing returns or law of diminishing marginal productivity in economics is a law that states that when one factor of input is increased while keeping the other factor constant, then there will be a decline in the output of the product with respect to per unit of added input.

What is the importance of law of diminishing returns?

When the total product curve is falling the?

marginal product of labor is negative.

How can studying be related to the law of diminishing returns?

In the case of studying, another hour of studying would be a unit, and the marginal return would be a percentage increase in my score as a result of that extra hour of studying. Diminishing marginal returns describes the relationship between doing more of an action and the returns one receives.