Diminishing returns to capital occu

Diminishing returns to capital occurs if an addition of capital with other inputs held constant increases output by less than the previous increment of capital
Assumption: all inputs except capital are held constant
Result: output increases at a decreasing rate
When a firm has many machines, the most productive uses have already been filled
The increment in capital will necessarily be assigned to a less productive use than the previous increment
Principle of Increasing Opportunity Cost