Marginal Land Theory

Marginal Land Theory suggests that the productivity of land decreases as more inputs (like labor, fertilizer, or machinery) are added. In agriculture, for instance, prime land yields high returns, but as you move to less fertile or more challenging land (marginal land), the added benefits diminish. This theory helps to explain why it may not be economically viable to farm less productive areas, as the costs may outweigh the benefits compared to investing in more fertile land. Understanding this concept is essential for making informed decisions in agriculture and land management.