diminishing returns


diminishing returns
diminishing returns diˌminishing reˈturns noun [plural] ECONOMICS
1. the idea that a point can be reached where the advantage or profit you are getting stops increasing in relation to the effort you are making:

• By the mid-1990s, cost-cutting and restructuring were producing diminishing returns and the emphasis swung back to growth in revenues.

2. the law of diminishing returns the idea that when workers use a particular amount of something such as land or machinery, each additional worker will produce less and create less profit than the previous worker

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diminishing returns UK US noun [plural]
ECONOMICS a situation in which less and less is achieved despite the use of increasing amounts of effort or money: »

As diminishing returns set in on any given marketing tactic, revenues will exceed costs by less and less.

See also LAW OF DIMINISHING RETURNS(Cf. ↑law of diminishing returns)

Financial and business terms. 2012.