diminishing marginal product

Show Summary Details

Quick Reference

The tendency for successive extra units of any input to a productive process to yield smaller increases in output. If one input to a productive process rises, while other inputs are held constant, total output may increase; if it does, the input has a positive marginal product. As successive extra units of an input are applied, however, after a certain point output is likely to rise at a diminishing rate.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.