Increasing and Diminishing Returns
Concept of Increasing And Diminishing Returns in the context of Real Property
A short definition of Increasing And Diminishing Returns: An economic theory that an increase in capital or manpower will not increase production proportionately (five workers may do less than five times the work of one worker; and two workers may do more than twice the work of one worker). When the increase in production is proportionately greater than the addition, there is an increasing return; when production is proportionately less than the addition, the return diminishes.
Concept of Increasing And Diminishing Returns in the context of Real Property
A short definition of Increasing And Diminishing Returns: An economic theory that an increase in capital or manpower will not increase production proportionately (five workers may do less than five times the work of one worker; and two workers may do more than twice the work of one worker). When the increase in production is proportionately greater than the addition, there is an increasing return; when production is proportionately less than the addition, the return diminishes.
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