The law that refers to the amount of profit generated by additional inputs is known as the Law of Diminishing Returns. This economic principle states that as one factor of production—such as labor or capital—is incrementally increased while others are held constant, the resulting increase in output will eventually start to slow down. Initially, adding more input can lead to significant increases in output, but after reaching a certain point, each additional input contributes less and less to overall production.
In the context of agritechnology, this concept is crucial for understanding how resource allocation affects efficiency and productivity. For example, if a farmer keeps adding fertilizer to a fixed amount of land, there comes a point where the added fertilizer no longer yields proportionally higher crop yields. This principle helps in making informed decisions about how much of a resource to apply for optimal returns without overapplying and wasting inputs, which could lead to environmental issues.
The other choices relate to different economic concepts: the Law of Supply and Demand explains market equilibrium; the Law of Conservation of Mass pertains to physical sciences, emphasizing that matter cannot be created or destroyed; and the Law of Marginal Utility describes the additional satisfaction gained from consuming one more unit of a good or service. These concepts do not directly address