ExampleIf you put 10 engineers on a project they may finish in 40 work days. If you assign 100 engineers to the same project they may finish in 30 days. Each extra engineer adds less and less value as the overhead of communicating and dividing the work increases. Eventually, returns from adding an additional engineer can turn negative.
|Overview: Diminishing Returns|
|Definition||Decreasing incremental output from additional resources.|
|Example||Fertilizer helps a plant until a certain point but eventually can harm it if you add too much.|
|Related Techniques||Diseconomies Of ScaleDiminishing Marginal Utility|