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Law of diminishing marginal returns At a certain point employing an additional factor of production causes a relatively smaller increase in output. Marshall was of the view that this law is applicable in every branch of industry or even in all human affairs. Https Encrypted Tbn0 Gstatic Com Images Q Tbn And9gcqwdtdiqgsajd9qfk28 Lgrp M Pihw10sbz6 D4cjm 0cgxvzo Usqp Cau The law of diminishing returns is universal which applies everywhere. Law of diminishing returns . It is the basis of all laws. In other words after a certain point of production each input will not increase outputs at the same rate. The inputs of other productive services being held constant beyond a certain point the resulting increments of the product will decrease ie the marginal product will diminish. Diminishing returns also called law of diminishing returns or principle of diminishing marginal productivity economic law stating that if one input in the production of a commodity is increased while all ot...