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What Is the Law of Diminishing Returns? Why Is This

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What is the law of diminishing returns? Why is this proposition called a "law"?


Definitions:

Total Costs

encompass all expenses incurred in the production of goods or services, including both fixed and variable costs.

Output Expands

When the production of goods or services increases in response to market demand or other factors.

Fixed Cost

Costs that remain constant regardless of the level of production or sales, such as lease payments and salaries.

Quantity

The amount or number of a material or immaterial good considered as a unit or total.

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