Explain the Difference Between Constant Marginal Returns Versus Diminishing Marginal

question 7

Essay

Explain the difference between constant marginal returns versus diminishing marginal returns for trade.

---

Definitions:

Correlation Analysis

The statistical technique used to determine the degree to which two or more quantitative variables are related to one another.

Independent Variable

A variable that is manipulated or classified in an experiment or study to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment or model that is assumed to depend on one or more independent variables.

Coefficient of Correlation

A metric that evaluates the degree and angle of a direct correlation between two quantities.