Diminishing Return

In: Business and Management

Submitted By slruffin
Words 275
Pages 2
Diminishing returns is an evaluation of the end result of a repeated activity, one of the factors being observed must be fixed and the other variable. The fixed factor is usually the thing that is benefiting from the investment. The variable factor is the thing that the investment funds are spent on to use on the fixed variable in improving it. The activity that involves the fixed and variable factors must be repetitive.
For example, think about a car. As it is used, the car will require repairs to improve its performance. However, at some point the car will be too old to really be improved by the repairs. The fixes will only serve to keep the car functioning, not improved. This is diminishing returns. Each additional investment will bring less and less of an improvement until you are simply paying to keep the car functioning.
In Studying, the fixed factor would be to make a passing grade and move on to the next classes without failure. The variable factor would be studying and meeting the requirements of the class to make a passing grade. A lot of activity plays into the variable factor. Because we are in an online learning environment we are required to have computers that contain the software, and the counterparts needed to complete assignments. We must have the resources to study with to include books and online material and last we must put time into studying. The Diminishing return would be if computers were no good and we had to constantly struggle with getting assignments done or we put too much time into cramming or hurrying to meet…...

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