The most important economic law under the head of production is known as the "Law of Diminishing Returns." This law applies alike to land, to labor, and to capital. Stated in terms of land in the simplest possible maimer, the law is: As additional units of labor and capital are applied to the utilization of a given piece of land, the increase in the product gained from the land will for a time be greater than the increase in the number of units of labor and capital expended; after which the increase in the product will decline relative to the increase in the number of units of labor and capital.