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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 enim satis est, ipsis non satis. Ut proverbia non nulla veriora sint quam vestra dogmata. Consequens enim est et post oritur, ut dixi. Si mala non sunt, iacet omnis ratio Peripateticorum. Duo Reges: constructio interrete. Haec para/doca illi, nos admirabilia dicamus. Nihil illinc huc pervenit.
Satisne vobis videor pro meo iure in vestris auribus commentatus? Ergo, si semel tristior effectus est, hilara vita amissa est? Quis enim redargueret? At multis malis affectus. Quod autem principium officii quaerunt, melius quam Pyrrho;
Facit igitur Lucius noster prudenter, qui audire de summo bono potissimum velit; Serpere anguiculos, nare anaticulas, evolare merulas, cornibus uti videmus boves, nepas aculeis. In his igitur partibus duabus nihil erat, quod Zeno commutare gestiret. Sapientem locupletat ipsa natura, cuius divitias Epicurus parabiles esse docuit. Quod autem principium officii quaerunt, melius quam Pyrrho; Sin te auctoritas commovebat, nobisne omnibus et Platoni ipsi nescio quem illum anteponebas? Quae diligentissime contra Aristonem dicuntur a Chryippo.
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. An me, inquam, nisi te audire vellem, censes haec dicturum fuisse? Ratio quidem vestra sic cogit. A quibus propter discendi cupiditatem videmus ultimas terras esse peragratas. Sed tamen est aliquid, quod nobis non liceat, liceat illis. Duo Reges: constructio interrete. Graecum enim hunc versum nostis omnes-: Suavis laborum est praeteritorum memoria. Quibus ego vehementer assentior. Neminem videbis ita laudatum, ut artifex callidus comparandarum voluptatum diceretur. Innumerabilia dici possunt in hanc sententiam, sed non necesse est. Sed residamus, inquit, si placet. Quid enim tanto opus est instrumento in optimis artibus comparandis?
Quamquam tu hanc copiosiorem etiam soles dicere. Quid de Platone aut de Democrito loquar? Philosophi autem in suis lectulis plerumque moriuntur.
Tu quidem reddes; Nos paucis ad haec additis finem faciamus aliquando; Tanti autem aderant vesicae et torminum morbi, ut nihil ad eorum magnitudinem posset accedere. Quam tu ponis in verbis, ego positam in re putabam. Cur iustitia laudatur? Haec quo modo conveniant, non sane intellego. Sit ista in Graecorum levitate perversitas, qui maledictis insectantur eos, a quibus de veritate dissentiunt. Iubet igitur nos Pythius Apollo noscere nosmet ipsos. Primum quid tu dicis breve? Quae rursus dum sibi evelli ex ordine nolunt, horridiores evadunt, asperiores, duriores et oratione et moribus. Contineo me ab exemplis. ALIO MODO.
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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