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Distinguish between law of diminishing returns

and laws of returns to scale?


The principle of diminishing returns to inputs is when more on one input is added, while other
inputs are held constant, the marginal product of the input diminishes. Decreasing returns to
scale is when the a firm doubles its inputs, output increases by less than double. With
diminishing returns, only one input is being changed while holding the other is fixed. But for
decreasing returns, both inputs may change.

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