![search](https://www.modelthinkers.com/public/assets/images/index/search_icon.png)
![Law of Diminishing Returns](https://www.modelthinkers.com/storage/app/public/model_image/iyRXbZRzOYoJ1GYQom4FSI2TJNMjoQTagC9afuI8.png)
![Law of Diminishing Returns](https://www.modelthinkers.com/storage/app/public/model_image/xBsSBIbKPAFhFUEukC38OXpwsmK7wqrldmupbgNF.png)
![view](https://www.modelthinkers.com/public/assets/images/common/eye.png)
![linkedin](https://www.modelthinkers.com/public/assets/images/common/Linkdin.png)
![twitter](https://www.modelthinkers.com/public/assets/images/common/Twitter.png)
![facebook](https://www.modelthinkers.com/public/assets/images/common/Facebook.png)
![google](https://www.modelthinkers.com/public/assets/images/common/mail.png)
![linkedin](https://www.modelthinkers.com/public/assets/images/common/Linkdin.png)
![twitter](https://www.modelthinkers.com/public/assets/images/common/Twitter.png)
![facebook](https://www.modelthinkers.com/public/assets/images/common/Facebook.png)
![google](https://www.modelthinkers.com/public/assets/images/common/mail.png)
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. Quae quidem sapientes sequuntur duce natura tamquam videntes; Quid Zeno? Suo genere perveniant ad extremum; Ne in odium veniam, si amicum destitero tueri. Duo Reges: constructio interrete. Miserum hominem! Si dolor summum malum est, dici aliter non potest. Sed quid minus probandum quam esse aliquem beatum nec satis beatum? Sin laboramus, quis est, qui alienae modum statuat industriae?
At enim hic etiam dolore. Unum nescio, quo modo possit, si luxuriosus sit, finitas cupiditates habere. Et harum quidem rerum facilis est et expedita distinctio. Certe, nisi voluptatem tanti aestimaretis. Quicquid porro animo cernimus, id omne oritur a sensibus; Nondum autem explanatum satis, erat, quid maxime natura vellet. Occultum facinus esse potuerit, gaudebit; Non enim, si omnia non sequebatur, idcirco non erat ortus illinc. Quid, quod res alia tota est? Summus dolor plures dies manere non potest?
Videmusne ut pueri ne verberibus quidem a contemplandis rebus perquirendisque deterreantur? Nihil enim iam habes, quod ad corpus referas; Vives, inquit Aristo, magnifice atque praeclare, quod erit cumque visum ages, numquam angere, numquam cupies, numquam timebis. Nunc vides, quid faciat. Cum salvum esse flentes sui respondissent, rogavit essentne fusi hostes. Sin aliud quid voles, postea. Ampulla enim sit necne sit, quis non iure optimo irrideatur, si laboret? Quamquam ab iis philosophiam et omnes ingenuas disciplinas habemus; Sed quid attinet de rebus tam apertis plura requirere? An vero, inquit, quisquam potest probare, quod perceptfum, quod.
![](https://www.modelthinkers.com/public/assets/images/common/Linkdin.png)
![](https://www.modelthinkers.com/public/assets/images/common/Twitter.png)
![](https://www.modelthinkers.com/public/assets/images/common/Facebook.png)
![](https://www.modelthinkers.com/public/assets/images/common/mail.png)
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Hoc ne statuam quidem dicturam pater aiebat, si loqui posset. Omnis enim est natura diligens sui.
Apparet statim, quae sint officia, quae actiones. Itaque dicunt nec dubitant: mihi sic usus est, tibi ut opus est facto, fac. Non quam nostram quidem, inquit Pomponius iocans; Haec para/doca illi, nos admirabilia dicamus. Duo Reges: constructio interrete. Duo enim genera quae erant, fecit tria.
Quae quidem sapientes sequuntur duce natura tamquam videntes; Et ego: Piso, inquam, si est quisquam, qui acute in causis videre soleat quae res agatur. Sed eum qui audiebant, quoad poterant, defendebant sententiam suam.
The Law of Diminishing Returns is based on a number of assumptions that are not always relevant to real-world situations. These include:
-
No change in technology
-
A short period of impact
-
Consistent, homogeneous units
-
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.
![](https://www.modelthinkers.com/public/assets/images/common/notebook.png)
Oops, That’s Members’ Only!
Fortunately, it only costs US$5/month to Join ModelThinkers and access everything so that you can rapidly discover, learn, and apply the world’s most powerful ideas.
ModelThinkers membership at a glance:
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://www.modelthinkers.com/public/assets/images/price/Small mark.png)
“Yeah, we hate pop ups too. But we wanted to let you know that, with ModelThinkers, we’re making it easier for you to adapt, innovate and create value. We hope you’ll join us and the growing community of ModelThinkers today.”