The law of diminishing marginal returns states that if increasing units of variable factors of production are combined with a given quantity of another fixed factor, returns are on the increased up to a point after which the marginal returns falls.
| LAND | UNITS OF LABOUR | TOTAL OUTPUT | MARGINAL OUTPUT | AVERAGE OUTPUT |
| 5 Hectares | 1 | 10 | 10 | 10 |
| 5 Hectares | 2 | 22 | 12 | 11 |
| 5 Hectares | 3 | 39 | 17 | 13 |
| 5 Hectares | 4 | 52 | 13 | 13 |
| 5 Hectares | 5 | 60 | 8 | 12 |
| 5 Hectares | 6 | 66 | 7 | 11 |
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