diminishing returns

American  

[dih-min-ish-ing ri-turnz] / dɪˈmɪn ɪʃ ɪŋ rɪˈtɜrnz /

noun

1. any rate of profit, production, benefits, etc., that beyond a certain point fails to increase proportionately with added investment, effort, or skill.

2. Also called law of diminishing returns.  Economics. the fact, often stated as a law or principle, that when any factor of production, as labor, is increased while other factors, as capital and land, are held constant in amount, the output per unit of the variable factor will eventually diminish.

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diminishing returns British  

plural noun

1. progressively smaller rises in output resulting from the increased application of a variable input, such as labour, to a fixed quantity, as of capital or land

2. the increase in the average cost of production that may arise beyond a certain point as a result of increasing the overall scale of production

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Etymology

Origin of diminishing returns

First recorded in 1805–15

Example Sentences

With the vast sums likely to be raised — and spent — by both sides, Kondik said that fundraising can reach a point of diminishing returns.

From Los Angeles Times • Apr. 17, 2026

The studios over the decades tried to as well, albeit often with increasingly diminishing returns.

From The Wall Street Journal • Apr. 10, 2026

Oil stocks show diminishing returns, with the energy ETF rising 0.5% after an 8% oil price jump, suggesting prices are already factored in.

From Barron's • Apr. 3, 2026

It's yet to be seen whether this is a virtuous circle that never stops, or whether Mercedes will reach diminishing returns and McLaren can catch up.

From BBC • Mar. 10, 2026

Possibly the present generation of English industrial history will furnish many illustrations of the law of diminishing returns.

From Encyclopaedia Britannica, 11th Edition, Volume 8, Slice 10 "Echinoderma" to "Edward" by Various