(the law of) diminishing returns - définition. Qu'est-ce que (the law of) diminishing returns
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Qu'est-ce (qui) est (the law of) diminishing returns - définition

ADDITIONAL FACTOR OF PRODUCTION RESULTING IN SMALLER INCREASE IN OUTPUT
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  • Diminishing Returns Graph: The graph highlights the concept of diminishing returns by plotting the curve of output against input. The areas of increasing, diminishing and negative returns are identified at points along the curve. There is also a point of maximum yield which is the point on the curve where producing another unit of output becomes inefficient and unproductive.
  • Figure 2: Output vs. Input [top] & Output per unit Input vs. Input [bottom]

Seen in [top], the change in output by increasing input from L<sub>1</sub> to L<sub>2</sub> is equal to the change from L<sub>2</sub> to L<sub>3</sub>.

Seen in [bottom], until an input of L<sub>1</sub>, the output per unit is increasing. After L<sub>1</sub>, the output per unit decreases to zero at L<sub>3</sub>.

Together, these demonstrate diminishing returns from L<sub>1</sub>.
  • ''Figure 2 [OLD]: Total Output vs. Total Input [top] & Output per unit Input vs. Total Input [bottom]''

Seen in TOP, the change in output by increasing output from L<sub>1</sub> to L<sub>2</sub> is equal to the change from L<sub>2</sub> to L<sub>3</sub>.

Seen in BOTTOM, until an output of L<sub>1</sub>, the output per unit is increasing. After L<sub>1</sub>, the output per unit decreases to zero at L<sub>3</sub>.

Together, these demonstrate diminishing returns from L<sub>1</sub>.

(the law of) diminishing returns      
(the law of) diminishing returns
the principle that as expenditure or investment increases each further increase produces a proportionately smaller return.
diminishing returns         
In economics, diminishing returns is a situation in which the increase in production, profits, or benefits resulting from something is less than the money or energy that is invested.
N-UNCOUNT
Diminishing returns         
In economics, diminishing returns is the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal (ceteris paribus). The law of diminishing returns (also known as the law of diminishing marginal productivity) states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input.

Wikipédia

Diminishing returns

In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal (ceteris paribus). The law of diminishing returns (also known as the law of diminishing marginal productivity) states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input. The law of diminishing returns does not cause a decrease in overall production capabilities, rather it defines a point on a production curve whereby producing an additional unit of output will result in a loss and is known as negative returns. Under diminishing returns, output remains positive, but productivity and efficiency decrease.

The modern understanding of the law adds the dimension of holding other outputs equal, since a given process is understood to be able to produce co-products. An example would be a factory increasing its saleable product, but also increasing its CO2 production, for the same input increase. The law of diminishing returns is a fundamental principle of both micro and macro economics and it plays a central role in production theory.

The concept of diminishing returns can be explained by considering other theories such as the concept of exponential growth. It is commonly understood that growth will not continue to rise exponentially, rather it is subject to different forms of constraints such as limited availability of resources and capitalisation which can cause economic stagnation. This example of production holds true to this common understanding as production is subject to the four factors of production which are land, labour, capital and enterprise. These factors have the ability to influence economic growth and can eventually limit or inhibit continuous exponential growth. Therefore, as a result of these constraints the production process will eventually reach a point of maximum yield on the production curve and this is where marginal output will stagnate and move towards zero. Innovation in the form of technological advances or managerial progress can minimise or eliminate diminishing returns to restore productivity and efficiency and to generate profit.

This idea can be understood outside of economics theory, for example, population. The population size on Earth is growing rapidly, but this will not continue forever (exponentially). Constraints such as resources will see the population growth stagnate at some point and begin to decline. Similarly, it will begin to decline towards zero but not actually become a negative value, the same idea as in the diminishing rate of return inevitable to the production process.

Exemples du corpus de texte pour (the law of) diminishing returns
1. Has no one heard of (the law of) diminishing returns?
2. Such spending cannot be maintained for long, and (the law of) diminishing returns is already raising the marginal cost of improved services.
3. A world away in fact from the sticky offering at Edgbaston, where the bang–it–in bowlers found the ball hanging on the surface and gained a crash course in (the law of) diminishing returns.
4. In fact, given the extent to which the genuine dangers of smoking have been exaggerated, any crusade against spreading waistlines will have to be spectacular just to avoid (the law of) diminishing returns.