Law of diminshing return?

The law of diminshing return is an term used in economics. It refers to how the marginal production of a factor of production starts to progressively decrease as the factor is increased, in contrast to the increase that would otherwise be normally expected. For example if you have a factory with a certain amount of floor space and employing a certain amount of employees, the output of the factory will increase if you increase the size of the floor space and/or the number of employees, perhaps on a one-for-on basis. However, at some point that relationship stops and eventually the rate of production increase begins to decrease (diminish) as you increase one of the variables. If, for example, you double the floor space and the number of employees, you might double (increase by 100%) the output of the factory. If you double them again, the output may only increase by 75% instead of 100%.