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Economics
Law of Diminishing Returns
Adding more of one input while keeping others fixed will eventually lead to smaller increases in output.
This law applies to almost every production process. It explains why companies eventually need to invest in more capital (new machines, bigger factories) instead of just hiring more people.
It's like adding more and more chefs to one tiny kitchen — after a point they just get in each other's way.
Real world: A factory has fixed space and machines. Adding more workers at first increases output a lot. After a while each new worker adds less and less output because the machines are already fully used.
💡 Diminishing returns is nature's way of saying 'you can't keep adding the same thing forever'.