Mar 25, 2011

Another Day of Diminishing Returns

The Law of Diminishing Returns haunts me.

"... a progressive decrease in the marginal output of a production process as the amount of a single factor of production is increased, while holding the amounts of all other factors of production constant."

" all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower per-unit returns.  The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact this is common."

Yes, thank you, Wikipedia for that caveat.  I'm not necessarily a total slug, although it is probable I will be soon.
I'm headed for negative returns ville.    TGIF.

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