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What does law of diminishing returns mean?

Looking for the meaning or definition of the word law of diminishing returns? Here's what it means.

Noun
  1. The tendency for a continuing effort toward a particular goal to decline in effectiveness after a certain amount of success has been achieved.
  2. (economics) A relationship between input and output, such that adding units of any one input (labour, capital etc.) to fixed amounts of the others will yield successively smaller increments of output.
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The quest for perfect information demands the highest investment of time and money and ignores the law of diminishing returns.
However, because of the law of diminishing returns, the way we've spent money on politics will change.
There comes a point in the refurbishment process where the law of diminishing returns come into play.
But the triumph of style over substance is always subject to the law of diminishing returns.
The law of diminishing returns limits benefits from pay boosts and bonuses.
As the region matures, they face the law of diminishing returns where it costs an increasing amount to get less out of the ground.

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