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-The law of diminishing returns describes the relationship between output and the variable input when other inputs are held constant.
- If increasing amounts of one input are added to a production process while all other inputs are held constant, the amount of output added per unit of variable input will eventually decrease.
- It is also known as law of diminishing productivity or the law of variable proportions.
- It displays increasing marginal returns first and then decreasing marginal returns
marto answered the question on April 16, 2019 at 12:46