This concept is the reason that a firm's short-run marginal cost curves will slope upward as the number of units of output increases, and in addition to explaining why the PPF is convex, it was key to Ricardo's understanding of rent.
Heinrich von Thune based his theory of land value on this concept in his treatise The Isolated State, in which he illustrated it utilizing a series of concentric circles termed his "rings." This concept also underlies Hotelling's rule, which gives a function for obtaining maximum rent while utilizing all of one's capital. This concept is the reason that a firm's short-run marginal cost curves will slope upward as the number of units of output increases, and in addition to explaining why the PPF is convex, it was key to Ricardo's understanding of rent. For ten points, identify this concept which states that the yields of production gradually decrease as production increases.
Heinrich von Thune based his theory of land value on this concept in his treatise The Isolated State, in which he illustrated it utilizing a series of concentric circles termed his "rings.
Law of {Diminishing Marginal Returns} (or “Law of {Variable Proportions}”)