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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, a widely accepted premise in economics, simply states that there is a point beyond which production is not increased proportionally to input, and eventually might even began to decrease. A ridiculously simple example is as follows: You have a factory with one machine making doo-dahs.