The law of variable proportions is also known as

The law of diminishing returns, also known as the law of variable proportions, is an economic concept that describes the relationship between the quantity of inputs used in production and the resulting outputs. In simple terms, the law of diminishing returns states that as more and more units of a variable input (such as labor or capital) are added to a fixed input (such as land), the marginal output (the additional output gained from each additional unit of the variable input) will eventually decrease, holding all other inputs constant. In other words, there is a point at which adding more of a variable input will not result in a proportionate increase in output, and the production process becomes less efficient. This law has important implications for decision making in agriculture, manufacturing, and other industries, as it highlights the importance of finding the optimal balance between inputs to maximize output and efficiency.