Law of Diminishing Returns :: essays papers

Law of fall ReturnsThe Law of diminishing returns is a key one in economics. It is utilize to explain many of the ways the economy works and changes. It is a comparatively simple idea spending and investing more than and more in a product where one of the factors of production remains the same meaning the enterprise will eventually run out of steam. The returns will let to diminish in the long run. If more fertilizer and better machinery be used on an acre of farmland, the bow will increase for a plot of ground but then begin to slow and become flat. A granger bath 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 keen is as follows When the pileus stock is low, at that place 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 constantly being utilized and secretaries must waste time hold for a free terminal. In this situation, the benefit in terms of increased output of adding extra terminals is high. However, if there are already as many terminals as secretaries, so that terminals are often idle and there is no waiting for a terminal to become available, little additional output can be obtained by adding yet another terminal.Another application for this rectitude is in Athletics, for runners, their investment is the time and energy put into homework and the yield is hopefully improved fitness. Early in their running careers or too soon in the training program a couple of weeks of regular training would be rewarded with a considerable increase in fitness. Having compassd a really fit state though, two weeks of regular training will achieve a barely p erceptible increase in fitness.