The law of diminishing returns, also known as the law of diminishing marginal returns, states that as the input of one factor of production is increased while keeping other factors constant, the marginal output or returns from that input will eventually diminish. In other words, there comes a point where additional units of input yield progressively smaller increments of output.

More isn’t always better! The Law of Diminishing Returns teaches us that after a certain point, adding more resources results in smaller gains. 📉⚖️ #DiminishingReturns #MentalModels #Economics

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