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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. Bork Mihi enim satis est, ipsis non satis. Nobis Heracleotes ille Dionysius flagitiose descivisse videtur a Stoicis propter oculorum dolorem. Sed vos squalidius, illorum vides quam niteat oratio. Non quam nostram quidem, inquit Pomponius iocans; Duo Reges: constructio interrete. Semper enim ex eo, quod maximas partes continet latissimeque funditur, tota res appellatur. Cenasti in vita numquam bene, cum omnia in ista Consumis squilla atque acupensere cum decimano. Idem iste, inquam, de voluptate quid sentit?
Ille vero, si insipiens-quo certe, quoniam tyrannus -, numquam beatus; At enim sequor utilitatem. Ab hoc autem quaedam non melius quam veteres, quaedam omnino relicta. Rationis enim perfectio est virtus; Atque haec coniunctio confusioque virtutum tamen a philosophis ratione quadam distinguitur. Sed quid attinet de rebus tam apertis plura requirere?
Hi curatione adhibita levantur in dies, valet alter plus cotidie, alter videt. Possumusne ergo in vita summum bonum dicere, cum id ne in cena quidem posse videamur? Summus dolor plures dies manere non potest? Sin autem est in ea, quod quidam volunt, nihil impedit hanc nostram comprehensionem summi boni. Atque ab isto capite fluere necesse est omnem rationem bonorum et malorum. Nam de isto magna dissensio est. Itaque eos id agere, ut a se dolores, morbos, debilitates repellant. Teneo, inquit, finem illi videri nihil dolere. Mihi quidem Antiochum, quem audis, satis belle videris attendere.
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Virtutis, magnitudinis animi, patientiae, fortitudinis fomentis dolor mitigari solet. Invidiosum nomen est, infame, suspectum. Si longus, levis. Est enim effectrix multarum et magnarum voluptatum. Si est nihil nisi corpus, summa erunt illa: valitudo, vacuitas doloris, pulchritudo, cetera. Duo Reges: constructio interrete.
Ad corpus diceres pertinere-, sed ea, quae dixi, ad corpusne refers? Color egregius, integra valitudo, summa gratia, vita denique conferta voluptatum omnium varietate. Nam aliquando posse recte fieri dicunt nulla expectata nec quaesita voluptate. Est autem etiam actio quaedam corporis, quae motus et status naturae congruentis tenet; Non igitur de improbo, sed de callido improbo quaerimus, qualis Q. Facit enim ille duo seiuncta ultima bonorum, quae ut essent vera, coniungi debuerunt; Quaero igitur, quo modo hae tantae commendationes a natura profectae subito a sapientia relictae sint. Nam Pyrrho, Aristo, Erillus iam diu abiecti.
Sed quod proximum fuit non vidit. Tum Torquatus: Prorsus, inquit, assentior; Sin laboramus, quis est, qui alienae modum statuat industriae? Sed tamen enitar et, si minus multa mihi occurrent, non fugiam ista popularia. Nonne igitur tibi videntur, inquit, mala? Sed finge non solum callidum eum, qui aliquid improbe faciat, verum etiam praepotentem, ut M. Et non ex maxima parte de tota iudicabis? Ille vero, si insipiens-quo certe, quoniam tyrannus -, numquam beatus;
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.
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