law of diminishing marginal returns

(redirected from law of diminishing returns)
Also found in: Dictionary, Thesaurus, Acronyms, Encyclopedia, Wikipedia.

Law of Diminishing Marginal Returns

In economics, the theory stating that each additional employee of a business is slightly less productive than the previously hired one. If all other factors remain constant, there is only so much production a business can provide. If it keeps hiring more employees, each employee will have less to do; in an extreme case, this can lead to payment for virtually no work. This may also apply to other factors of production; for example, if a factory increases the number of widget making machines but does not increase the number of employees to run them, eventually the widget machines simply take up space and tie up capital. The law of diminishing marginal returns is important to determining how much supply of a product a business can handle without diminishing productivity. See also: Austrian school, Law of Diminishing Marginal Utility.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

law of diminishing marginal returns

see DIMINISHING RETURNS.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Kevin Moran, who is a former competitive swimmer and lecturer in health at the University of Auckland, New Zealand, believes that elite athletes normally experience the law of diminishing returns.
Sadly, at the moment, their heroic sacrifice is something akin to the law of diminishing returns. John Anderson Eston, Teesside IT'S good to hear that Stacey Solomon has seen the error of her ways and quit smoking for the sake of her unborn baby.
Obama's university education, very defective by his own admission, apparently did not include the law of diminishing returns: the more he speaks, the less people listen.
In economics this unique feature of human conduct is called "Law of Diminishing Returns", which states that in all productive processes adding more of one factor while holding all others constant will at some point yield lower units".
The TV lawyers are eating each other up, and the law of diminishing returns is kicking in.
Related to Creative Suite, Hilal believes the challenges are two-fold: first, it is suffering from the law of diminishing returns, whereby there is less reason to upgrade with each successive release (and a model based mostly on unit sales exacerbates this); and second, new standards, specifically HTML5, will lessen the relevance of Flash and ultimately of CS.
He has to be aware of the law of diminishing returns. If all you ever put back in is a fraction of what you take out, the end result is what they've got today.
In all attempts to increase efficiency, the law of diminishing returns comes in, so food production must have a limit beyond which we cannot go.
Julian Mike Vogel Terry Danny Pino June Brittany Murphy The Porter Brad Greenquist Man in Slippers Arie Verveen Anna Natalia Smyka Cook Guillermo Diaz Flirting with the law of diminishing returns, Alex Merkin's "Across the Hall," the feature-length version of his fest-fave short, doesn't quite surpass the sum of its parts.
"The law of diminishing returns is setting in for the Government.
"In a perfect illustration of the law of diminishing returns, the protagonists of this series have become caricatures of their original, sharply delineated selves, and the serial-killer-cum-stalker plot, once fresh and exciting, is now formulaic and stale.
* Non-renewable resources decrease and costs increase, partly a result of the Law of Diminishing Returns (fig.