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# Law of diminishing marginal returns chalapathi v (2)

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law of diminishing marginal returns

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### Law of diminishing marginal returns chalapathi v (2)

1. 1. TO, MAHIN SHARIF DEPARTMENT OF ECONOMICS SERICULTURE COLLEGE CHINTAMAN FROM, CHALAPATHI V I BSc (AGRI) ALC3011 SERICULTURE COLLEGE CHINTAMANI.
2. 2. • This law also called “ The Law Of Increasing Relative Cost”. • Simply we call LDMR.
3. 3. • When more workers are added to a given amount of fixed factors ,the fixed factors are more fully utilized ;so marginal product(MP) rises initially .Efficiency will decline, leading to diminishing marginal product.
4. 4. • “We will get less and less extra output when we add additional doses of an input while holding other inputs fixed. In other words, the marginal product of each unit of input will decline as the amount of that input increases holding all other inputs constant."
5. 5. • The concept of LDMR introduced by Jackques Turgot, Johann Heinrich Von Thunan, Thomas Malthus, David Ricardo. • Karl Marx developed a version of the LDMR in his book CAPITAL volume III
6. 6. Important Points • Diminishing returns and Diminishing marginal returns are not the same thing. • Diminishing marginal returns means the MP curve is falling. • The output may be either negative or positive.