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Topic: diminishing returns

Diminishing Returns: Why More Inputs Can Increase Per-Unit Cost

Many business leaders believe that scale is an answer to inefficiency or poor production, the idea being that a business may be inefficient at a given scale but can unlock ‘scale efficiencies’ as it grows larger and can spread fixed costs across a larger platform. While scale can improve productivity, it is worth noting that […] ... Read More

  November 30, 2017     

Understanding Diminishing Returns

Diminishing returns is an economic principle that theorises about the relationships between an increase in the number of employees and a reduction in productivity. According to this principle, an increasing number of new employees causes the productivity of another employee to be smaller than the productivity of the previous employee at some point. ... Read More

  September 30, 2017