The Rybczynski theorem under decreasing returns to scale

One of the most celebrated theorems of international trade is the Rybczynski theorem. This theorem was originally developed by Rybczynski1 within the context of a two-good, two-factor model. The theorem states that when the supply of a factor grows, output of the good which uses the growing factor intensively will increase at constant commodity prices, while the output of the other good will fall.