Law of Diminishing Returns
What is the Law of Diminishing Returns?
Written by Jason Gordon
Updated at March 26th, 2023
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What is the Law of Diminishing Returns?
The law of diminishing returns is the premise that additional units of a given resources may initially provide greater benefit; but, eventually the benefit provided by each additional unit will decline until it reaches zero (or no additional benefit).
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- Self Interest
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- Efficiency Theory
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