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Think back to the last time you overindulged in a huge, delicious dessert. It’s likely that the first bite was divine, but perhaps ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Mihi, inquam, qui te id ipsum rogavi? Atqui eorum nihil est eius generis, ut sit in fine atque extrerno bonorum. Quicquid enim a sapientia proficiscitur, id continuo debet expletum esse omnibus suis partibus; Cur, nisi quod turpis oratio est? Iubet igitur nos Pythius Apollo noscere nosmet ipsos. At multis se probavit.
Obsecro, inquit, Torquate, haec dicit Epicurus? Itaque mihi non satis videmini considerare quod iter sit naturae quaeque progressio. Nosti, credo, illud: Nemo pius est, qui pietatem-; Duo Reges: constructio interrete.
Et si turpitudinem fugimus in statu et motu corporis, quid est cur pulchritudinem non sequamur? Perturbationes autem nulla naturae vi commoventur, omniaque ea sunt opiniones ac iudicia levitatis. In eo enim positum est id, quod dicimus esse expetendum. At multis malis affectus. Nihilne te delectat umquam -video, quicum loquar-, te igitur, Torquate, ipsum per se nihil delectat? An dolor longissimus quisque miserrimus, voluptatem non optabiliorem diuturnitas facit? Stoici scilicet.
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duarum enim vitarum nobis erunt instituta capienda. Quamquam te quidem video minime esse deterritum. Quamquam te quidem video minime esse deterritum. Haec para/doca illi, nos admirabilia dicamus. Atqui iste locus est, Piso, tibi etiam atque etiam confirmandus, inquam; Maximas vero virtutes iacere omnis necesse est voluptate dominante.
Disserendi artem nullam habuit. Omnia contraria, quos etiam insanos esse vultis. Sic enim censent, oportunitatis esse beate vivere. Videamus animi partes, quarum est conspectus illustrior; Quo studio Aristophanem putamus aetatem in litteris duxisse? Sedulo, inquam, faciam.
Duo Reges: constructio interrete. Quem si tenueris, non modo meum Ciceronem, sed etiam me ipsum abducas licebit. Sequitur disserendi ratio cognitioque naturae; Praetereo multos, in bis doctum hominem et suavem, Hieronymum, quem iam cur Peripateticum appellem nescio. Maximas vero virtutes iacere omnis necesse est voluptate dominante. Non est ista, inquam, Piso, magna dissensio. Bork Quamquam in hac divisione rem ipsam prorsus probo, elegantiam desidero.
The Law of Diminishing Returns is based on a number of assumptions that are not always relevant to real-world situations. These include:
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No change in technology
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A short period of impact
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Consistent, homogeneous units
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Measurement of product using tangible units.
Each of these assumptions might be challenged in the real world. Technology is always progressing, the units of input are likely going to vary (hiring one person compared to another person will have different impacts) and even the questions of measurement will be more complex beyond the narrow assessment of weight or financial value.
It relies on a static, predictable system which is rarely true or at least has clear limitations when applied to the complexity of reality.
Too Many Cooks.
A useful example to explain this model is to consider a small food truck that sells doughnuts. If that truck has one cook, they might be able to produce 20 doughnuts every hour. Adding one more cook might increase that output to 40 doughnuts every hour. However, adding a third cook might only allow them to produce 45 doughnuts every hour because of the limited space and resources in the truck, and adding a fourth cook might not add any returns at all.
d
The concept of Diminishing Returns has a rich and long history, being traced back to economists such as Adam Smith, Jacques Turgot, and Thomas Mathus. The earliest explicit references to this model were in relation to farming outputs and can be attributed to Thomas Malthus and David Ricardo.
My Notes
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