Both the law of diminishing marginal returns and returns to scale measure output as a result of changes in input.

The law of diminishing marginal returns states that there comes a point when an additional factor of production results in a lessening of output or impact.

Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies ...

Existing conditions for gainful trade under conditions of variable returns to scale are merely sufficient. Basing ourselves on the possible non-uniqueness of the production equilibrium under variable ...

That is, the incredible capital-intensity and economic barriers to entry of the aircraft industry mean that there are increasing returns to scale.