“If it were not for the law of diminishing marginal returns, the world’s wheat could be grown in a flower pot.” Explain.

What will be an ideal response?

The law of diminishing returns states that beyond some level of variable input, such as labor, additional amounts of input add diminishing (but not necessarily negative) amounts of output, other inputs held constant. So, holding land constant, additional amounts of labor or fertilizer yield diminishing additional wheat output. If there were no such law, additional amounts of the variable input would yield constant or increasing marginal output, so additional land would never be needed.