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What Is the Law of Diminishing Returns?What Is the Law of Diminishing Returns? The law of diminishing returns is a basic but powerful idea in economics. It explains why adding more and more of something—like workers, machines, or study time—does not always lead to equally large improvements in results. After a certain point, each additional unit of input produces a smaller increase in output than the one before it. In...0 Comments 0 Shares 953 Views 0 Reviews