The law of diminishing returns

@article{Shephard1974TheLO,
  title={The law of diminishing returns},
  author={Ronald W. Shephard and Rolf F{\"a}re},
  journal={Zeitschrift f{\"u}r National{\"o}konomie},
  year={1974},
  volume={34},
  pages={69-90}
}
Turgot [11] introduced into economic thought a proposition which has come to be known as the “Law of Diminishing Returns.” Properly stated, it is one of the few generalities of economic theory which might be called a law, prompting Schumpeter [6] to state: “It embodies an achievement that is nothing short of brilliant and suffices in itself to place Turgot as a theorist high above Adam Smith.” Loosely worded, the proposition asserts that as equal quantities of capital and labor are applied… Expand
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Scaling laws for production have been used or implied in various economic analyses of “returns to scale,” all of which known to the writer use a scalar valued production function Φ(x) of homotheticExpand
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The homogeneous and the homothetic production functions do not have many properties which are of interest in production theory, so the functional equation Φ(λx)=ϕ(λ,x/|x|)Φ(x) is introduced which is a generalization of the functional equations. Expand
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