What causes diminishing marginal returns?

What causes diminishing marginal returns? Diminishing Marginal Returns occur when an extra additional production unit produces a reduced level of output. Some of the causes of diminishing marginal returns include: fixed costs, limited demand, negative employee impact, and worse productivity. What causes the law of diminishing marginal returns? Neoclassical economists postulate that each “unit” of … Continue reading What causes diminishing marginal returns?