Law of diminishing returns is a concept in economics that states that as one input is increased while other inputs remain constant, there is a point at which the marginal increase in output begins to decline.

Applicability of law of diminishing returns:

1. Manufacturing Industry: The law of diminishing returns is applicable in the manufacturing industry when the production process involves the use of one or more inputs. As the production process continues, the addition of more inputs will lead to a decline in the marginal product, which will ultimately result in a decline in the total output.

2. Agriculture: The law of diminishing returns is also applicable in agriculture. As more and more fertilizer, water, and labor are added to the cultivation process, there comes a point where the additional inputs lead to a decline in the marginal product, which results in a decline in the total output.

3. Any economic activity at a point of time: The law of diminishing returns is applicable to any economic activity at a point of time. This concept is used to help businesses and policymakers understand the relationship between inputs and outputs and to make decisions that can optimize production and minimize waste.

Conclusion:

In conclusion, the law of diminishing returns is a fundamental concept in economics that is applicable to any economic activity at a point of time. This concept can help businesses and policymakers understand the relationship between inputs and outputs and make informed decisions about production and resource utilization.