The cornerstone of diminishing return talks surround such straightforward notions; that when you’ve got a extremely fast aircraft, you have coefficients of drag difficulties. When you’re constructing a quarter mile car and want to go faster you need to realize that for each tenth of a second you will need to lose 100 lbs., but to go faster you need more energy, thus the difficulty in Einstein’s concept of the threshold of speed being the speed of light. In aviation there’s a hyperbolic curve with coefficients of drag which produces aircraft layout almost obsolete when dealing within the bounds of the air together with the relationships of speed, time and space equations.
Some ideas on the streamlining of support vehicles placed on a grid system of space, point of origin and return, rings of service area, GPS and ESRI monitoring and coding are discussed in my article on Grid Marketing that can be found on this website.
In the event of a refuse, garbage or garbage business or even a police department that gets calls to pick up the garbage in our society we see the need for efficiencies, but also the notions of decreasing returns on the implemented efficiencies. The problem being that you need X amount of drivers, vehicles and infrastructure to pick up X quantity of garbage. Once the ideal optimum is reached there’s not any way to improve production or in this case collection.
When looking at companies to invest in one wants to examine the infrastructures and equipment set up and the concept of diminishing returns. Can the firm continue to have exponential gains with new clients through efficiency alone? And when one of the market drivers of inventory and shareholders equity is from increased ROI, then there is a time when you can’t redline your gear any further. Think on this idea.