Why Physical Constraints Produce Diminishing Returns in Industrial Economic Systems

09/14/23

“Why do physical constraints produce diminishing returns in industrial economic systems?”

Industrial economic systems transform raw materials into physical outputs. This can range from high-speed rail cars created to solar energy produced for households. Machinery is required in the creation process. Physical constraints such as limited fabrication machinery or smaller than expected electric supply will be a bottleneck in production and decrease activity. This is Why Physical Constraints Produce Diminishing Returns in Industrial Economic Systems.