Search results
Results from the WOW.Com Content Network
Under diminishing returns, output remains positive, but productivity and efficiency decrease. The modern understanding of the law adds the dimension of holding other outputs equal, since a given process is understood to be able to produce co-products. [4] An example would be a factory increasing its saleable product, but also increasing its CO ...
The law of diminishing returns states that if you add more units to one of the factors of production and keep the rest constant, the quantity or output created by the extra units will eventually get smaller to a point where overall output will not rise ("diminishing returns"). For example, consider a simple farm that has two inputs: labor and land.
Amdahl's law does represent the law of diminishing returns if one is considering what sort of return one gets by adding more processors to a machine, if one is running a fixed-size computation that will use all available processors to their capacity. Each new processor added to the system will add less usable power than the previous one.
Mature industries do not attract new capital because of low returns. [26] Mature companies with large amounts of capital invested and brand recognition can also try to block new competitors in their markets. [27] See also secular stagnation theory. The use of credit instruments to reduce capital costs for new production.
Lucas’ seminal paper was a reaction to observed trends in international development efforts during the 20th century. Regions characterized by poverty, such as South Asia and Africa, have received particular attention with regard to the underinvestment predicted by Lucas.
The recent slowdown suggests Trump is getting diminishing returns from his legal problems as he closes in on his Republican Party's nomination to face Democratic incumbent Joe Biden in the Nov. 5 ...
Another frequent critique concerns the cornerstone assumption of diminishing returns to capital. Stephen Parente contends that new growth theory has proved to be no more successful than exogenous growth theory in explaining the income divergence between the developing and developed worlds (despite usually being more complex).
When there are two machines, twenty eight furnitures are built. However, as the number of machines available increase, the change in the output turns out to be less significant compared to the previous number. That fact can be observed in the marginal product which begins to decrease: diminishing marginal returns. This is justified by the fact ...