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.



“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.