Dictionary.com

diminishing returns, law of

Save This Word!

An economic law propounded by David Ricardo, also called the law of diminishing marginal returns. It expresses a relationship between input and output, stating that adding units of any one input (labor, capital, etc.) to fixed amounts of the others will yield successively smaller increments of output.

QUIZZES

QUIZ YOURSELF ON “ITS” VS. “IT’S”!

Apostrophes can be tricky; prove you know the difference between it’s and its in this crafty quiz!
Question 1 of 12
On the farm, the feed for chicks is significantly different from the roosters’; ______ not even comparable.
In common usage, the “point of diminishing returns” is a supposed point at which additional effort or investment in a given endeavor will not yield correspondingly increasing results.
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
What's This Word?