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Glossary Environmental Economics / Term

Diminishing Returns

The principle that says as one input increases, with other inputs fixed, the resulting increase in output tends to be smaller and smaller As more and more of a productive resource is added to a given amount to other productive resources, additions to output will eventually diminish other factors, such as technology and the degree of specialization remaining constant.

Permanent link Diminishing Returns - Creation date 2020-04-19


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