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रिटर्न ह्रासमान

The more you have, the smaller is the extra benefit you get from having even more; also known as diseconomies of scale (see economies of scale). For instance, when workers have a lot of capital giving them a little more may not increase their productivity anywhere near as much as would giving the same amount to workers who currently have little or no capital. This underpins the catch-up effect, whereby there is (supposedly) convergence between the rates of growth of developing countries and developed ones. In the new economy, some economists argue, capital may not suffer from diminishing returns, or at least the amount of diminishing will be much smaller. There may even be ever increasing returns.

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