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Diminishing Returns, also called the law of diminishing returns or principle of diminishing marginal productivity, economic...

Diminishing Returns, also called the law of diminishing returns or principle of diminishing marginal productivity, economic law stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output. Can you give an example of a business production process and how the law affects the costs/ marginal productivity?

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Suppose a business uses fertilizer as an input for the production of cauliflower. Upto a certain threshold addition of fertilizer in the firm will increase the productivity of the land and the total output will increase with increased use of fertilizer but after a certain level , addition of fertilizer in the land will not increase the productivity rather it will diminish the productivity by affecting the lands capacity of production. The total output will increase but at a diminishing rate. This is called law of diminishing returns of production.

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