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Another reason why diminishing returns occur is that as more and more of an input is added, the law of diminishing marginal utility comes into play. This law states that as you consume more and more of a good, the marginal utility (the additional satisfaction you get from consuming one more unit of the good) will decrease. So, if you add more and more workers to a factory, eventually the additional output produced by each additional worker will be less because the workers will be less productive and the marginal utility of the additional output will decrease.

I have observed the principle of diminishing returns at work in a few different jobs I’ve had. For example, when I was a waiter, I noticed that as I worked more and more hours, my productivity would eventually start to decrease. This is because I would start to get tired and make more mistakes.

Another example of diminishing returns I’ve experienced is in my current job as a software engineer. When I’m working on a difficult coding problem, I’ll often find that the first few hours of work are very productive. However, as I continue to work on the problem, my productivity will eventually start to decrease. This is because I’ll start to get frustrated and make more mistakes.

The principle of diminishing returns is a real-world phenomenon that can have a significant impact on productivity. It’s important to be aware of this principle so that you can manage your time and resources effectively.