Have you ever noticed that sometimes, no matter how much effort you put into something, the results just don’t seem to get better and better?
Maybe you piled on more and more toppings on your pizza, but at some point, it became too much and didn’t taste as good. Or perhaps you kept practicing a new skill, but after a while, you didn’t seem to be improving as quickly as you did at first.
This is an example of the Law of Diminishing Returns at work!
The Law of Diminishing Returns is a principle that says that after a certain point, putting in more effort or resources into something doesn’t always lead to better and better results.
In fact, sometimes adding more can even start to have the opposite effect and make things worse!
It’s like when you’re blowing up a balloon.
At first, each breath you blow into the balloon makes it bigger and bigger.
But if you keep blowing too much air into it, eventually the balloon will pop! That’s because there’s a limit to how much air the balloon can hold before the benefits of blowing more air into it start to diminish.
Here are some other examples of diminishing returns that you might have experienced:
Adding more and more players to a game of catch can make it harder to play well
Putting too many plants in a small pot can make them all struggle to grow big and healthy
Eating too many cookies can make you feel sick instead of enjoying the treat
In each of these examples, there’s a point where adding more (players, plants, cookies) stops making things better and can even start to make them worse.
Understanding the Law of Diminishing Returns is important because it helps us recognize when we might be putting in too much effort for too little reward.
It reminds us that sometimes, less can be more, and that moderation and balance are key.
By being aware of diminishing returns, we can learn to use our time, energy, and resources more efficiently. We can focus our efforts on the things that really matter and have the most impact, instead of wasting our efforts on things that aren’t as valuable or productive.
One of the best ways to understand the Law of Diminishing Returns is to experience it for yourself.
Here are some fun activities to try:
Watering Plants:
Plant a few seeds in different pots and water them with varying amounts of water each day. See how the plants respond to different levels of water and identify the point where too much water starts to harm their growth.
Building Towers:
Use blocks or other materials to build towers. See how adding more blocks can help the tower grow taller, but also observe when adding too many blocks can cause the tower to become unstable and collapse.
Baking Cookies:
Follow a recipe for baking cookies, but experiment with adding different amounts of ingredients (like sugar or chocolate chips). Observe how the taste and texture of the cookies change as you add more or less of certain ingredients.
Remember, the Law of Diminishing Returns is all about finding the right balance and recognizing when too much of something can actually start to have negative consequences. By understanding this principle, you’ll be better equipped to use your time, effort, and resources more wisely and achieve the best possible results in everything you do!
Please note: We now have a longer article on Equilibrium Points and the Law of Diminishing Returns in the “Mental Models” section of our website.
Limitless offers a compelling exploration of diminishing returns through Eddie Morra’s experimental journey with a cognitive enhancement drug.
Through his transformation from struggling writer to financial genius, students witness how initial improvements yield dramatic results, but each subsequent “dose” of enhancement brings fewer benefits while increasing costs and risks.
The film cleverly demonstrates how pushing any system – in this case, human cognition – beyond its natural limits eventually leads to declining marginal returns and potentially dangerous consequences.
As viewers follow Eddie’s desperate attempts to maintain his superhuman performance through escalating doses, they learn how the law of diminishing returns applies not just to productivity but to any system where increasing inputs eventually yield smaller and smaller gains.
The film’s portrayal of addiction, side effects, and the ultimate unsustainability of artificial enhancement provides a powerful framework for understanding why more isn’t always better in complex systems.
(Verse 1)
You pile on the toppings, on your pizza slice
Thinking more is better, but it comes at a price
You keep on practicing, that brand new skill
But the improvements slow down, despite your will
(Chorus)
The Law of Diminishing Returns
More isn’t always better, we soon learn
There’s a point where adding more
Doesn’t help like before, it’s a concept to explore
(Verse 2)
Blowing up a balloon, it grows with every breath
But too much air, and it meets its death
Too many players in a game, too many plants in a pot
Too many cookies in your tummy, it’s not hitting the spot
(Bridge)
Diminishing returns, it’s a principle to understand
Recognizing when less is more, it’s a skill to command
Moderation and balance, they’re the keys to success
Focusing efforts where they matter, not just making a mess
(Chorus)
The Law of Diminishing Returns
More isn’t always better, we soon learn
There’s a point where adding more
Doesn’t help like before, it’s a concept to explore
(Verse 3)
Watering plants, building towers tall
Baking cookies, experimenting with it all
Hands-on learning, helps us see
The Law of Diminishing Returns, in action, practically
(Bridge)
Using time and resources, efficiently and wise
Achieving the best results, not just going for the prize
The Law of Diminishing Returns, it’s a lesson to discern
In everything we do, it’s a principle to learn
(Chorus)
The Law of Diminishing Returns
More isn’t always better, we soon learn
There’s a point where adding more
Doesn’t help like before, it’s a concept to explore
(Outro)
So remember the balance, remember the key
Moderation in all things, it’s the way to be
The Law of Diminishing Returns, it’s a truth to embrace
For success and happiness, in every time and place!
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