Which economic concept describes the effect of increasing fertilizer on tomato production in fields?

The correct answer is the law of diminishing returns, which describes a key concept in economics that pertains to production. This law states that if one input in the production process is increased while all other inputs remain constant, the additional output (or marginal return) gained from that increased input will eventually decrease after a certain point.

In the context of increasing fertilizer on tomato production, initially, adding more fertilizer may lead to a significant increase in tomato yield, as the plants benefit from the additional nutrients. However, as more fertilizer is applied, the benefits begin to wane; there will come a point where adding even more fertilizer results in smaller and smaller increases in production, and eventually, it may lead to negative effects on the plants if over-fertilization occurs.

Understanding this concept is crucial for farmers and producers because it informs decisions about how much fertilizer to apply to optimize yield without wasting resources or harming the crop. This principle emphasizes the importance of balancing inputs in agricultural production for maximum efficiency and profitability.