Abstract
Although the ‘law of diminishing returns’ is basic to economic theory, it is not a law of economics. It merely states a technical relationship. Economic decisions arise only when the relative prices of factors are considered in conjunction with the technical data concerning the productivity of different units of a variable factor.
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© 1994 J. Harvey and Janet Johnson
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Harvey, J., Johnson, M.K. (1994). Combining the Factors of Production. In: Modern Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-23360-1_10
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DOI: https://doi.org/10.1007/978-1-349-23360-1_10
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-60835-7
Online ISBN: 978-1-349-23360-1
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