The law of dimization yield states that if another input is considered constant, then when a certain input is added to the production process, its additional output initially increases; However, if these inputs are added up to a certain point, the additional output generated is experienced. At this rate, the addition of labor increases overall output, but reduces the firm`s marginal output. The company, which initially produced a maximum of breakdowns, has slowly experienced a decline. If employees continue to be added in the hope of increasing productivity, the company will enter the third phase. That is, the phases of negative returns. However, it was ineffective because each worker only took a quarter out of the bag. As a result, the capital spent to pay employees does not match the performance achieved. Namun, apakah yang dimaksud dengan the law of diminishing margnal yield? The law of the decrease of marginal yield membahas tentang keterbatasan peningkatan factor input untuk meningkatkan suatu produksi. Suppose there is a manufacturer that can double its overall performance but only achieves a 60% increase in overall performance.

This is an example of declining scale declines. If, in the end, the same producer doubles its total output, it has achieved constant economies of scale, where the increase in production is proportional to the increase in production input. However, economies of scale occur when the percentage increase in output is greater than the percentage increase in inputs (so that production triples due to the doubling of inputs). Neoclassical economists postulate that each « unit » of labor is exactly the same, and that diminishing returns are caused by a disruption of the entire production process, as additional units of labor are added to a certain amount of capital. The law of diminishing marginal return helps managers determine the optimal workforce needed to achieve maximum return. If the number of staff is increased to twenty, the work will be completed very quickly. David Ricardo (1772-1823), a well-known English economist, postulated one of the economic rules, namely the law of diminishing returns. In simple terms, the law of the decrease in marginal yield can be described by an eighth that must be chosen from grass. If the work is done by five people, it will be completed in 2 hours, with each person taking out a bag of grass.

Yang dimaksud dengan the law of decreasing marginal utility dan the law of diminishing yield adalah: The law of diminishing marginal utility adalah nilai tambah yang diperoleh oleh seorang konsumen atas konsumsi barang yang dilakukannya secara terus menerus sampai nilai tambah itu menjadi negative. The law of diminishing returns is related to the concept of decreasing marginal utility. It can also be compared to economies of scale. – Produksi merupakan salah satu kegiatan ekonomi yang utama. Produksi mengolah beberapa input menjadi suatu hasil produksi atau ouput. The law of diminishing returns is not only a basic principle of economics, but also plays a major role in the theory of production. Production theory is the study of the economic process of converting inputs into outputs. For example, to produce 10 shoes, 5 workers are needed, after adding employees to 7 shoes, production increases to 20 shoes, and after employees are added again and 10 employees become, the shoes produced are only 25. That is, the more the factor of production (employees) is added, the more the amount of production increases initially, but when it is added again, the quantity of production decreases and decreases.

Suitable for Investopedia once the company is at the optimal point, adding additional workers beyond the optimal level will lead to less efficient results. For example, expanding agricultural production by adding labour-producing factors to a plot of land will provide the highest additional yields.

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