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The law of diminishing marginal returns (DMR)

The law of diminishing marginal returns (DMR) states that employing extra variable factors of production (such as labour) eventually causes the marginal returns (additional output) to diminish. (HL only).

Where this appears

The syllabus topics that use this term.

  • 2.2Law of Diminishing Marginal Returns
  • 2.2Movements vs Shifts of Supply Curve

Taught in Supply

All 809 terms
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