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.
diminishing returns in British English
plural noun economics
1.
progressively smaller rises in output resulting from the increased application of a variable input, such as labour, to a fixed quantity, as of capital or land
2.
the increase in the average cost of production that may arise beyond a certain point as a result of increasing the overall scale of production
diminishing returns in American English
(dəˈmɪnɪʃɪŋ)
Economics
the proportionately smaller increase in productivity observed after a certain point in the increase of capital, labor, etc.
diminishing returns in American English
noun
1.
any rate of profit, production, benefits, etc., that beyond a certain point fails to increase proportionately with added investment, effort, or skill
2. Also called: law of diminishing returns Economics
the fact, often stated as a law or principle, that when any factor of production, as labor, is increased while other factors, as capital and land, areheld constant in amount, the output per unit of the variable factor will eventually diminish
Word origin
[1805–15]
diminishing returns in Finance
(dɪmɪnɪʃɪŋ rɪtɜrnz)
noun
(Finance: Economics)
Diminishing returns is a situation in which production, profits, or benefits increase less and less asmore money is spent or more effort is made.
Volume growth need not necessarily be accompanied by diminishing returns, although the risk is quite real.
Adding more workers without increasing the number of machines will lead to diminishing returns.
Diminishing returns is a situation in which production, profits, or benefits increase less and less asmore money is spent or more effort is made.
Examples of 'diminishing returns' in a sentence
diminishing returns
He talked about the economies of scale and diminishing returns.