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The law of diminishing returns

The law of diminishing returns: Managerial Economics
The law of diminishing returns: Managerial Economics

The law of diminishing returns indicates that the ratio of input and output is not constant. For example, the additional sales generated with a 20000$ advertising budget is not necessarily twice as much as for 10000$ advertising budget. In many instances, sales still increases, but at a lower rate. Decision makers need to consider this when optimizing their use of resources.

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Skill Level Intermediate
1h 20m
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