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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 ...
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Qua tu etiam inprudens utebare non numquam. Quid est igitur, inquit, quod requiras? Vide, ne etiam menses! nisi forte eum dicis, qui, simul atque arripuit, interficit. Duo Reges: constructio interrete. Cupiditates non Epicuri divisione finiebat, sed sua satietate. Quid autem habent admirationis, cum prope accesseris? Ipse Epicurus fortasse redderet, ut Sextus Peducaeus, Sex.
Quo tandem modo? Quid in isto egregio tuo officio et tanta fide-sic enim existimo-ad corpus refers? Tu enim ista lenius, hic Stoicorum more nos vexat. Quod quidem nobis non saepe contingit. Maximas vero virtutes iacere omnis necesse est voluptate dominante. De ingenio eius in his disputationibus, non de moribus quaeritur. Et quod est munus, quod opus sapientiae?
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
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Duo Reges: constructio interrete. Animi enim quoque dolores percipiet omnibus partibus maiores quam corporis. Bork Itaque quantum adiit periculum! ad honestatem enim illum omnem conatum suum referebat, non ad voluptatem. Plane idem, inquit, et maxima quidem, qua fieri nulla maior potest. Quid, si non sensus modo ei sit datus, verum etiam animus hominis? Atque ab isto capite fluere necesse est omnem rationem bonorum et malorum. Itaque hic ipse iam pridem est reiectus;
Hic quoque suus est de summoque bono dissentiens dici vere Peripateticus non potest. Paria sunt igitur. Suo genere perveniant ad extremum; Conferam tecum, quam cuique verso rem subicias; Videamus animi partes, quarum est conspectus illustrior; In quo etsi est magnus, tamen nova pleraque et perpauca de moribus.
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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