An example of diminishing returns is, when you buy a new fishing lure and use it repeatedly in a small pond, the fish will respond well at first, as it is something new, but the longer you use the lure, the more the fish become aware of the lure. The number of bites the lure returns begins to diminish, effectively decreasing the value of the individual lure.

In terms of studying for this course, the point of diminishing returns has been reached when you are studying for hours on end, the information you retain over time begins to diminish, making your time less valuable the longer you study.

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