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

Larger teams outperform small ones up to about five members, Uzzi says, but after that, you tend to get diminishing returns.

From The Wall Street Journal • Apr. 5, 2026

You can understand where she’s coming from, but after a certain point ... she’s gonna hit diminishing returns.

From Los Angeles Times • Mar. 19, 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

There is also the risk of diminishing returns: as more platforms deploy similar tools, AI may become a baseline cost of doing business rather than a lasting differentiator.

From Barron's • Feb. 1, 2026

The law of diminishing returns applies to mining as well as to agriculture.

From Essentials of Economic Theory As Applied to Modern Problems of Industry and Public Policy by Clark, John Bates