Editing Marginal revenue (section)

==Law of increasing marginal returns==
In contrast to the law of diminishing marginal returns, in a knowledge-dependent economy, as knowledge and technological inputs increase, the output increases and the producer's returns tend to increase.  This is an example of increasing marginal revenue; suppose a company produces toy airplanes. After some production, the company spends $10 in materials and labor to build the 1st toy airplane. The 1st toy airplane sells for $15, which means the profit on that toy is $5. Now, suppose that the 2nd toy airplane also costs $10, but this time it can be sold for $17. The profit on the 2nd toy airplane is $12 greater than the profit on the 1st toy airplane.