0 saved
7.7K views
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. Atque haec ita iustitiae propria sunt, ut sint virtutum reliquarum communia. Sed vos squalidius, illorum vides quam niteat oratio. Prioris generis est docilitas, memoria; Innumerabilia dici possunt in hanc sententiam, sed non necesse est. Terram, mihi crede, ea lanx et maria deprimet. Portenta haec esse dicit, neque ea ratione ullo modo posse vivi;
Duo Reges: constructio interrete. Videamus animi partes, quarum est conspectus illustrior; Videamus animi partes, quarum est conspectus illustrior; Quis non odit sordidos, vanos, leves, futtiles? Haec bene dicuntur, nec ego repugno, sed inter sese ipsa pugnant. Beatus sibi videtur esse moriens. Cum id fugiunt, re eadem defendunt, quae Peripatetici, verba. Fortitudinis quaedam praecepta sunt ac paene leges, quae effeminari virum vetant in dolore. Quasi vero, inquit, perpetua oratio rhetorum solum, non etiam philosophorum sit.
Saepe ab Aristotele, a Theophrasto mirabiliter est laudata per se ipsa rerum scientia; Cupit enim dícere nihil posse ad beatam vitam deesse sapienti. Facile est hoc cernere in primis puerorum aetatulis. Sed vos squalidius, illorum vides quam niteat oratio. Videsne ut, quibus summa est in voluptate, perspicuum sit quid iis faciendum sit aut non faciendum? Num igitur eum postea censes anxio animo aut sollicito fuisse?
- Find the optimal peak.
Know that ‘more of a good thing is not always better’ ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Traditur, inquit, ab Epicuro ratio neglegendi doloris. Nihil sane. Iam id ipsum absurdum, maximum malum neglegi.
Et quidem saepe quaerimus verbum Latinum par Graeco et quod idem valeat; Duo Reges: constructio interrete. Hoc dictum in una re latissime patet, ut in omnibus factis re, non teste moveamur.
Quae cum praeponunt, ut sit aliqua rerum selectio, naturam videntur sequi; Eorum enim omnium multa praetermittentium, dum eligant aliquid, quod sequantur, quasi curta sententia; Cum id quoque, ut cupiebat, audivisset, evelli iussit eam, qua erat transfixus, hastam. Vide igitur ne non debeas verbis nostris uti, sententiis tuis. Sic, et quidem diligentius saepiusque ista loquemur inter nos agemusque communiter. Nulla erit controversia. Scientiam pollicentur, quam non erat mirum sapientiae cupido patria esse cariorem. Cum id fugiunt, re eadem defendunt, quae Peripatetici, verba. Levatio igitur vitiorum magna fit in iis, qui habent ad virtutem progressionis aliquantum. Dolor ergo, id est summum malum, metuetur semper, etiamsi non aderit;
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.
My Notes
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:
“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.”
You Might Also Like:
- Actionable summaries of the world's most powerful ideas.
Subscribe now and download this practical guide to transform your thinking, plus recieve one short, powerful and actionable idea in your inbox each month.