Diminishing Returns
The concept revises the law of diminishing returns as a tool that helps to understand and predict benefits and maximise returns. This knowledge can help business owners measure the amount of expected benefits when increasing production output.
Technique Overview
Diminishing Returns Definition
Diminishing Returns is the phenomenon whereby the benefit from an extra unit of input declines as the quantity of that input increases (Mankiw, 2009).
Diminishing Returns Description *
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Business Evidence
Strengths, weaknesses and examples of Diminishing Returns *
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Business Application
Implementation, success factors and measures of Diminishing Returns *
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Professional Tools
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Further Reading
Diminishing Returns web and print resources *
Diminishing Returns references (4 of up to 20) *
- Conway, E. (2009) 50 Economics Ideas You Really Need to Know. Quercus.
- Dannen, C. (2010) Why the Microsoft-Yahoo Search Deal Won’t Help Bing. BNET, 19 February. Available at:
- Hagel, J., Brown, J.S. (2008) Innovation for Hard Times. BusinessWeek, 21 November. Available at:
- Hirschey, M. (2009) Fundamentals of Managerial Economics. Cengage Learning.
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