What Is the Law of Diminishing Returns?

Diminishing rate of return, referred to as "diminishing rate of return". Under the condition of constant technology, the incremental increase in output caused by continuously increasing the variable input of the same unit to a certain amount. Because the newly added variable inputs of the same amount can only interact with fewer and fewer constant inputs. For example, continuously adding capital to a fixed amount of labor will cause an increase in total output, but the increase will be less and less. The proponents of western human capital theory believe that this rule also applies to education investment. ^[1]