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Law of Diminishing Returns
A principle stating that as more units of a variable input are added to a fixed input, the additional output produced by each new unit will eventually decrease.
Plant Size
The scale or capacity of a factory or production facility, which can affect production efficiency, costs, and the ability to meet demand.
Short Run
A period in economics during which the quantities of at least one input, such as plant size, cannot be changed.
Variable
An element, feature, or factor that is liable to vary or change.
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