Law of diminishing returns – After a certain level of production efficiency is achieved, further investments in manpower, energy or some other input will result in even smaller increases in profit

To remember the definition of the phrase law of diminishing returns, use the following mnemonic:

The law firm were expensive and I diminished how often I returned (law of diminishing returns) to them when they started giving me more lawyers. Each one cost me much more money but gave me a lot less return.

Examples of law of diminishing returns in a sentence

The country will now see the law of diminishing returns of over-taxation.

They can not get the money from the rich because of the law of diminishing returns.

As regulation increases in complexity and breadth, the law of diminishing returns kicks in.