What is law of increasing act?

The law of increasing act, often referred to in economics, describes how as more units of a variable factor of production (like labor) are added to a fixed factor (like land), the additional output produced (marginal product) will eventually decline. This principle highlights the diminishing returns that occur when additional inputs yield progressively smaller increases in output. Essentially, while initially adding more resources can enhance productivity significantly, beyond a certain point, the benefits decrease.