The law of diminishing returns holds that the marginal product of a variable input will eventually decline if output is increased while at least one input is fixed.

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The law of diminishing returns states that if one factor of production (input) is increased while other factors are held constant, the output per unit of the variable factor will eventually decrease. This principle is observed in scenarios where adding more of one input (e.g., labor) to a fixed input (e.g., land or machinery) will at some point yield lower per-unit returns.

The Law of Diminishing Returns Holds That the Marginal Product