The below equation shows Damage as a function of Attack stat. (x = Attack Stat for this equation)
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It can be seen that Damage increases linearly as Attack increases. An increase in attack of a specific amount always yields the same damage increase.
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The below equation shows Damage as a function of Defense stat. (x = Defense Stat for this equation)
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It can be seen that Damage decreases non-linearly as Defense increases (Damage is proportional to 1/Defense). An increase in defense when a pokemon's defense stat is low will mean more than an increase in defense when a pokemon's defense stat is high since the slope of the graph becomes more positive as defense increases (A more negative slope means a greater damage reduction per stat of defense).
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The below equation is the derivative of Damage as a function of Attack Stat
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equals
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The derivative is a constant. This means that the Damage increase per Attack Stat increase never changes (Constant Returns).
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The below equation is the derivative of Damage as a function of Defense Stat
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The derivative decreases as defense increases. This means that the Damage decrease per Defense Stat increase decreases as Defense is increased (Diminishing Returns).
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Examples