“Diminishing marginal returns” is underspecified. Is this diminishing marginal returns of productivity or utility? Is it in money? Goods? Some other thing? I think it’s diminishing marginal utility in goods, but I’m not sure. Some types of diminishing marginal returns do imply gains from trade, but others don’t.
“Diminishing marginal returns” is underspecified. Is this diminishing marginal returns of productivity or utility? Is it in money? Goods? Some other thing? I think it’s diminishing marginal utility in goods, but I’m not sure. Some types of diminishing marginal returns do imply gains from trade, but others don’t.
See Dagon’s comment above.