Why Your Extra Effort Is A Waste Of Your Time -Mental Model 017

Diminishing Returns

Beyond a certain point, the rate of profit, production, or benefit fails to increase proportionally with added investment, effort, or skill.

 

Diminishing Returns Example:

A farmer with 1,000 acres and 10 workers is yielding the maximum output of each worker—100 acres. If the farmer hires 2 more workers, his farm will be less efficient as each worker only has to look after 83 acres—17 acres less than their maximum output.

 

Wisdom:

“The Law of Diminishing Returns is true of everything in life, except sex, which seems endlessly repeatable with effect.” ― Robert McKee, Story: Style, Structure, Substance, and the Principles of Screenwriting

 

Read more:

> Diminishing returns on Wikipedia.