What does diminishing returns mean?
Definitions for diminishing returns
di·min·ishing re·turns
This dictionary definitions page includes all the possible meanings, example usage and translations of the word diminishing returns.
Wikipedia
Diminishing returns
In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal (ceteris paribus). The law of diminishing returns (also known as the law of diminishing marginal productivity) states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input. The law of diminishing returns does not cause a decrease in overall production capabilities, rather it defines a point on a production curve whereby producing an additional unit of output will result in a loss and is known as negative returns. Under diminishing returns, output remains positive, however productivity and efficiency decrease. The modern understanding of the law adds the dimension of holding other outputs equal, since a given process is understood to be able to produce co-products. An example would be a factory increasing its saleable product, but also increasing its CO2 production, for the same input increase. The law of diminishing returns is a fundamental principle of both micro and macro economics and it plays a central role in production theory.The concept of diminishing returns can be explained by considering other theories such as the concept of exponential growth. It is commonly understood that growth will not continue to rise exponentially, rather it is subject to different forms of constraints such as limited availability of resources and capitalisation which can cause economic stagnation. This example of production holds true to this common understanding as production is subject to the four factors of production which are land, labour, capital and enterprise. These factors have the ability to influence economic growth and can eventually limit or inhibit continuous exponential growth. Therefore, as a result of these constraints the production process will eventually reach a point of maximum yield on the production curve and this is where marginal output will stagnate and move towards zero. However it should also be considered that innovation in the form of technological advances or managerial progress can minimise or eliminate diminishing returns to restore productivity and efficiency, and to generate profit. This idea can be understood outside of economics theory, for example, population. The population size on Earth is growing rapidly, but this will not continue forever (exponentially). Constraints such as resources will see the population growth stagnate at some point and begin to decline. Similarly, it will begin to decline towards zero, but not actually become a negative value. The same idea as in the diminishing rate of return inevitable to the production process.
Wikidata
Diminishing returns
In economics, diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant. The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower per-unit returns. The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact this is common. For example, the use of fertilizer improves crop production on farms and in gardens; but at some point, adding more and more fertilizer improves the yield less per unit of fertilizer, and excessive quantities can even reduce the yield. A common sort of example is adding more workers to a job, such as assembling a car on a factory floor. At some point, adding more workers causes problems such as workers getting in each other's way or frequently finding themselves waiting for access to a part. In all of these processes, producing one more unit of output per unit of time will eventually cost increasingly more, due to inputs being used less and less effectively.
Numerology
Chaldean Numerology
The numerical value of diminishing returns in Chaldean Numerology is: 6
Pythagorean Numerology
The numerical value of diminishing returns in Pythagorean Numerology is: 5
Examples of diminishing returns in a Sentence
We are not at the point of diminishing returns, we will find you. We will arrest you.
From a historical perspective, most animated sequels outside of top tier franchises have been prone to the law of diminishing returns.
When it feels like it’s too much, it’s too much, there is absolutely a point of diminishing returns.
That's not very hard to train. It's not rocket science, it's really just about reaching the peak of your adulthood and not going past the age where there are diminishing returns.
To me it shows that the relationship is veering toward increasingly intense competition and the Pentagon sees diminishing returns on the value of military to military cooperation with China.
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"diminishing returns." Definitions.net. STANDS4 LLC, 2024. Web. 30 Apr. 2024. <https://www.definitions.net/definition/diminishing+returns>.
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