the laws of diminishing returns

• Law of diminishing return: as more units of a variable input are added to a fixed input, after a certain point the marginal product of output will decrease (ceritis paribus)
• Short-run: when there is at least one foxed factor of production
• the law of diminishing return only applies in the short term
• the law of diminishing returns - if one factor of production is increased while other factors stay fixed, eventually the output of production will decrease
• marginal product is the additional output produced by adding one more unit of input
• initially as you add more FoP the marginal product will increase, perhaps due to greater specialisation or more workers, land, labour, capital or enterprise. However, other fixed factors will begin to limit the additional output you receive and marginal product will begin to fall - this is the point of diminishing return

  
• as marginal product receives beings to fall, marginal cost will increase, as you are receiving less additional output from each unit of input