Research on the Influence of the Law of Diminishing Marginal Returns in Agriculture

Abstract

Agriculture is the primary industry in China and plays a vital role in the country's economic construction. In the process of developing agriculture, there are many scientific methods and laws that need to be followed in order to increase crop yield, reduce costs, and thus obtain more profits. The law of diminishing marginal returns is a widely used theory in the agricultural field. This paper studies the embodiment and influence of the law of diminishing marginal returns on some important factors in agricultural production. The research method adopted is empirical research. The study concluded that the planting density, the number of labor and the amount of fertilizer applied in agriculture largely follow the law of diminishing marginal returnsblindly increasing the above factors will not maximize the benefit, but will make the total profit negative growth. Therefore, it must be combined with the actual production situation, control its use in agricultural production, so as to maximize the profit, that is, the marginal revenue brought by the input is equal to its marginal cost.