Law of Marginal Returns: How Much Study? Research

Law of Marginal Returns
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Introduction
According to John 2005, the law of diminishing returns state that as an increasing amount of a variable factor is added to a fixed factor, the marginal product of the variable factor may be at first rise but must eventually fall. This law applies in the short run since it is only then that one factor of production is fixed while in the long run, all the other factors are variables.
Many factors influence a business' output. One factor is the type of technology that a company adapts its quality and quantity can obscure or enhance the output of the firm. Also utilizing more laborers allows a company practice specialization of tasks which is needed in the production process (Wells, 2015). This division of tasks helps workers to work more efficiently, and this result in rates of production increasing, however, when employees are too many again, this leads to overcrowding, and this results in an increase in output at a lower rate. This particular pattern of production is what happens with the law of diminishing returns.