What is a Diminishing Return?

Declining rate of return is a bourgeois economic theory on the trend of changing returns. That is, the ratio between newly invested capital and labor and newly added income will gradually decrease. The diminishing returns were first proposed by France's Dourge and the British Anterson at the same time, and the British Malthus further explained the changes in land income. Malthus asserted that the output of people cultivated land does not increase correspondingly with the increase of capital and labor, additional investment in a piece of land, after a certain limit, the additional income will gradually decrease, and that this is a law. [1]

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