The Law of diminishing returns is a key one in economics. It is used to explain many of the ways the economy works and changes. It is a relatively simple idea; spending and investing more and more in a product where one of the factors of production remains the same means the enterprise will eventually run out of steam. The returns will begin to diminish in the long run. If more fertilizer and better machinery are used on an acre of farmland, the yield will increase for a while but then begin to slow and become flat. A farmer can only get so much out of the land, and the more the farmer works, the harder it gets. The economic reason for diminishing returns of capital is as follows: When the capital stock is low, there are many workers for each machine, and the benefits of increasing capital further are great; but when the capital stock is high, workers already have plenty of capital to work with, and little benefit is to be gained from expanding capital further. For example, in a secretarial pool in which there are many more secretaries than computer terminals, each terminal is consta......

Word Count: 402
Page Count: 1.6 (250 words a page / double spaced)

What is Your Time Worth? Get INSTANT UNLIMITED ACCESS to this Essay
and 15,000 other Essays & Term Papers . Only $12.99!

View This Essay Now

Get instant access to this essay paper and 15,000 term papers, essays, and book reports for only $12.99!
If you wish to view the free essay of Law of Diminishing Returns, you must donate an original essay to our web site so that we can grow our collection of free essays, book reports and term papers. Click to donate and then view the entire Law of Diminishing Returns essay, term paper or book report for FREE.

Search for other Law of Diminishing Returns essays, term papers and book reports.

Other Free Essays, Term Papers and Book Reports:

Singapore's Economy free essay paper
Monopolies Effect on Resource Allocation in Industry free essay paper
Coke vs Pepsi Fighting for Foreign Markets free term paper
Baileys Irish Cream Case Study free term paper
History of Physics free book report
Electrolytes free essay paper
The Theory of Chaos free term paper
The Culture of Pakistan: An Interview with Sohail Shah free term paper
Verbal Aggression free essay paper
Why IQ Tests Don't Test Intelligence free term paper
Starting a Business on the Internet free term paper
The Sun Dance free essay paper
Dance free essay paper
Dance free term paper
Religion Vs. Astronomy free book report
Ancient Astronomy free term paper
Ulysses free term paper
The Existence Of Aliens free term paper
UFO's: Fact or Myth? free essay paper
UFO free essay paper

We realize you have a choice when selecting where to go to find a book report, essay or term paper on Law of Diminishing Returns so we appreciate your support in using our essay help and term paper help service.

Dear Free Essays:

Thanks for helping me with my term paper!
With so many essays and term papers on your service, I got a few ideas from mixing and matching and managed to write a great paper in 1/10 the time. My teacher thought so too because I got an A grade. Thank you so much!

Julia B.
Denver, Colorado

I'm very pleased with the quality of your term papers and essays. For all the time and worrying your service saved me from, it was well worth the $12.99.

Brandon W.
Columbus, Ohio

I totally waited to the last minute to work on my term paper and really started to freak. But your site totally came to my rescue and helped me out of a bind. I scored an 89 so I was very pleased. If your crew is ever in San Diego, I'll buy you all a beer!

Greg F.
UC San Diego