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Diminishing means becoming smaller and smaller. While diminishing pain is a good thing, diminishing returns on your investment is not so welcome. The law of diminishing returns refers to the tendency at a certain point for continued effort in an area to begin producing a smaller and smaller result.
The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact this is common. A common sort of example is adding more people to a job, or assembling a car on a factory floor.