Share This Article:

Economic Definition of increasing marginal returns. Defined.

Offline Version: PDF

Term increasing marginal returns Definition: In the short-run production of a firm, an increase in the variable input results in an increase in the marginal product of the variable input. Increasing marginal returns typically surface when the first few quantities of a variable input are added to a fixed input. Compare this with decreasing marginal returns. You should also compare this with economies of scale associated with long-run production.


« income-price model | increasing opportunity cost »


Alphabetical Reference to Over 2,000 Economic Terms