The law of diminishing returns helps to explain why:

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more of a variable input (like labor) is added to a fixed input (like capital or land), the additional output produced from each new unit of the variable input will eventually decrease. This principle leads to an increase in marginal cost as more output is produced in the short run, because it becomes increasingly expensive to produce additional units of output when inputs become less efficient.

The Law of Diminishing Returns Helps to Explain Why