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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. Huic mori optimum esse propter desperationem sapientiae, illi propter spem vivere. Te enim iudicem aequum puto, modo quae dicat ille bene noris. Plane idem, inquit, et maxima quidem, qua fieri nulla maior potest. Ipse Epicurus fortasse redderet, ut Sextus Peducaeus, Sex.
Inscite autem medicinae et gubernationis ultimum cum ultimo sapientiae comparatur. Cuius ad naturam apta ratio vera illa et summa lex a philosophis dicitur. Isto modo ne improbos quidem, si essent boni viri.
Quid de Platone aut de Democrito loquar? Sed quia studebat laudi et dignitati, multum in virtute processerat. Duo Reges: constructio interrete. Illud mihi a te nimium festinanter dictum videtur, sapientis omnis esse semper beatos; Tibi hoc incredibile, quod beatissimum. Ego quoque, inquit, didicerim libentius si quid attuleris, quam te reprehenderim.
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Si id dicis, vicimus. Id enim volumus, id contendimus, ut officii fructus sit ipsum officium. Ita multo sanguine profuso in laetitia et in victoria est mortuus. Quid est igitur, inquit, quod requiras? Duo Reges: constructio interrete. Ergo omni animali illud, quod appetiti positum est in eo, quod naturae est accommodatum. Conferam tecum, quam cuique verso rem subicias; Quae quo sunt excelsiores, eo dant clariora indicia naturae. Atque ab his initiis profecti omnium virtutum et originem et progressionem persecuti sunt.
Eorum enim est haec querela, qui sibi cari sunt seseque diligunt. Multoque hoc melius nos veriusque quam Stoici. Cur igitur, inquam, res tam dissimiles eodem nomine appellas? Videmus igitur ut conquiescere ne infantes quidem possint. His singulis copiose responderi solet, sed quae perspicua sunt longa esse non debent. Videamus animi partes, quarum est conspectus illustrior; Illi enim inter se dissentiunt. Non enim ipsa genuit hominem, sed accepit a natura inchoatum. Nihil acciderat ei, quod nollet, nisi quod anulum, quo delectabatur, in mari abiecerat.
Bestiarum vero nullum iudicium puto. Summum ením bonum exposuit vacuitatem doloris; At hoc in eo M. Verum hoc idem saepe faciamus. Quid igitur, inquit, eos responsuros putas? Ergo illi intellegunt quid Epicurus dicat, ego non intellego?
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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