diminishing returns

Meaning

This term refers to a point where the level of profits or benefits gained is less than the amount of money or energy invested. In economics, it describes how adding more of a single factor of production eventually yields progressively smaller increases in output. The tone is formal and analytical, but it is also widely used in everyday professional contexts to describe declining efficiency.

Examples

• We've spent millions on advertising this month, but we are starting to see diminishing returns.

  We've spent millions on advertising this month, but we are starting to see diminishing returns.

• Working eighty hours a week often leads to diminishing returns due to extreme mental fatigue.

  Working eighty hours a week often leads to diminishing returns due to extreme mental fatigue.

• Adding more developers to the project now might result in diminishing returns because of communication overhead.

  Adding more developers to the project now might result in diminishing returns because of communication overhead.

• The team realized that further tweaking the software code would yield diminishing returns.

  The team realized that further tweaking the software code would yield diminishing returns.

• At some point, expanding the factory floor faces the law of diminishing returns if you don't hire more staff.

  At some point, expanding the factory floor faces the law of diminishing returns if you don't hire more staff.

Common Mistakes

• ✗ We are getting a diminishing return.

  ✓ We are seeing diminishing returns.

  The phrase is almost always plural ('returns') and is typically paired with verbs like 'see', 'experience', 'reach', or 'yield', without an indefinite article.

• ✗ The project is in diminishing returns.

  ✓ The project has reached a point of diminishing returns.

  You do not say a project is 'in' diminishing returns. It 'reaches', 'hits', or 'yields' diminishing returns.

Related Expressions

Practice

• After studying for ten hours straight, you will likely hit a point of ___.

  💡 Getting less benefit for the same amount of effort.

  Show answer

  diminishing returns

• The marketing campaign was highly successful at first, but now it's yielding ___.

  💡 Decreasing efficiency or profit relative to input.

  Show answer

  diminishing returns