If you’ve ever taken an Economics class you may recognize the meaning behind the blue curve above. The curve represents the Law of Diminishing Returns and it suggests there is a point (the middle phase in the graph above) when adding one more employee to a company will result in a smaller increase in productivity than the previous employee (marginal return of labor). It even suggests that there is a point further down the line where adding another employee will actually result in lower total productivity (think of the phrase too many chefs in the kitchen). If you still don’t fully understand the concept, then check out a more in-depth explanation here.