What economic law states that as more of a resource is added, the additional output produced will eventually decrease?
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Diminishing marginal returns
A classic example is adding more workers to a small kitchen. Eventually, they will get in each other's way, and each new worker will contribute less to the total output than the one before.
Also asked as:
- What economic principle describes the point at which adding more of a single factor of production results in smaller increases in output?