![search](https://modelthinkers.com/public/assets/images/index/search_icon.png)
![Law of Diminishing Returns](https://modelthinkers.com/storage/app/public/model_image/iyRXbZRzOYoJ1GYQom4FSI2TJNMjoQTagC9afuI8.png)
![Law of Diminishing Returns](https://modelthinkers.com/storage/app/public/model_image/xBsSBIbKPAFhFUEukC38OXpwsmK7wqrldmupbgNF.png)
![view](https://modelthinkers.com/public/assets/images/common/eye.png)
![linkedin](https://modelthinkers.com/public/assets/images/common/Linkdin.png)
![twitter](https://modelthinkers.com/public/assets/images/common/Twitter.png)
![facebook](https://modelthinkers.com/public/assets/images/common/Facebook.png)
![google](https://modelthinkers.com/public/assets/images/common/mail.png)
![linkedin](https://modelthinkers.com/public/assets/images/common/Linkdin.png)
![twitter](https://modelthinkers.com/public/assets/images/common/Twitter.png)
![facebook](https://modelthinkers.com/public/assets/images/common/Facebook.png)
![google](https://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. Est enim effectrix multarum et magnarum voluptatum. Estne, quaeso, inquam, sitienti in bibendo voluptas? Duo Reges: constructio interrete. An est aliquid per se ipsum flagitiosum, etiamsi nulla comitetur infamia? Inscite autem medicinae et gubernationis ultimum cum ultimo sapientiae comparatur. Ut id aliis narrare gestiant? Cur, nisi quod turpis oratio est?
Quod ea non occurrentia fingunt, vincunt Aristonem; Quis non odit sordidos, vanos, leves, futtiles? Tum Piso: Atqui, Cicero, inquit, ista studia, si ad imitandos summos viros spectant, ingeniosorum sunt; Quos quidem tibi studiose et diligenter tractandos magnopere censeo. Varietates autem iniurasque fortunae facile veteres philosophorum praeceptis instituta vita superabat. An ea, quae per vinitorem antea consequebatur, per se ipsa curabit? Si quae forte-possumus. Isto modo ne improbos quidem, si essent boni viri.
Haec para/doca illi, nos admirabilia dicamus. Hoc mihi cum tuo fratre convenit. Polycratem Samium felicem appellabant. Tecum optime, deinde etiam cum mediocri amico. Vitae autem degendae ratio maxime quidem illis placuit quieta. Bonum negas esse divitias, praeposìtum esse dicis? Tum Piso: Quoniam igitur aliquid omnes, quid Lucius noster? Quis non odit sordidos, vanos, leves, futtiles?
![](https://modelthinkers.com/public/assets/images/common/Linkdin.png)
![](https://modelthinkers.com/public/assets/images/common/Twitter.png)
![](https://modelthinkers.com/public/assets/images/common/Facebook.png)
![](https://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. Duo enim genera quae erant, fecit tria. Egone quaeris, inquit, quid sentiam? Illum mallem levares, quo optimum atque humanissimum virum, Cn. Certe nihil nisi quod possit ipsum propter se iure laudari. Duo Reges: constructio interrete. Quod vestri quidem vel optime disputant, nihil opus esse eum, qui philosophus futurus sit, scire litteras. In quibus doctissimi illi veteres inesse quiddam caeleste et divinum putaverunt. Bork Quamquam te quidem video minime esse deterritum.
Nunc ita separantur, ut disiuncta sint, quo nihil potest esse perversius. Tu autem inter haec tantam multitudinem hominum interiectam non vides nec laetantium nec dolentium? Prioris generis est docilitas, memoria; At ille pellit, qui permulcet sensum voluptate. Quia nec honesto quic quam honestius nec turpi turpius. Multa sunt dicta ab antiquis de contemnendis ac despiciendis rebus humanis; Negabat igitur ullam esse artem, quae ipsa a se proficisceretur; Ego vero volo in virtute vim esse quam maximam;
Saepe ab Aristotele, a Theophrasto mirabiliter est laudata per se ipsa rerum scientia; Propter nos enim illam, non propter eam nosmet ipsos diligimus. Ergo in gubernando nihil, in officio plurimum interest, quo in genere peccetur. Et ille ridens: Video, inquit, quid agas; Tum Torquatus: Prorsus, inquit, assentior; Non est enim vitium in oratione solum, sed etiam in moribus. Cur igitur, inquam, res tam dissimiles eodem nomine appellas? Quod ea non occurrentia fingunt, vincunt Aristonem; Haeret in salebra.
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://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://modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://modelthinkers.com/public/assets/images/price/Small mark.png)
![Small mark](https://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.”