Diminishing returns is an economic principle that describes how adding more of one input, while keeping others constant, eventually leads to smaller increases in output. For example, if a farmer uses more fertilizer on a fixed piece of land, the initial increases in crop yield may be significant, but over time, each additional unit of fertilizer will produce less and less additional yield. This concept is important in various fields, including agriculture, manufacturing, and even personal productivity. Understanding diminishing returns helps individuals and businesses make informed decisions about resource allocation, ensuring they do not waste time or materials on efforts that yield minimal benefits.