
HOMOGENEOUS OF DEGREE N: A property of an equation the exists if independent variables are increased by a constant value, then the dependent variable is increased by the value raised to the power of n. The value of n can be greater than, less than, or equal to one. This property often surfaces in the analysis of production functions. If n = 1, then a doubling independent variables results in a doubling of the dependent variable and the production function has constant returns to scale. If n > 1, then a doubling independent variables results in more than a doubling of the dependent variable and the production function has increasing returns to scale. If n < 1, then a doubling independent variables results in less than a doubling of the dependent variable and the production function has decreasing returns to scale.
Visit the GLOSS*arama




VARIABLE FACTOR OF PRODUCTION: An input whose quantity can be changed in the time period under consideration. This usually goes by the shorter term fixed input and should be immediately compared and contrasted with fixed factor of production, which goes by the shorter term fixed input. The most common example of a variable factor of production is labor. A variable factor of production provides the extra inputs that a firm needs to expand shortrun production. In contrast, a fixed factor of production, like capital, provides the capacity constraint in production. As larger quantities of a variable factor of production, like labor, are added to a fixed factor of production like capital, the variable factor of production becomes less productive. See also  variable input  input  output  fixed input  shortrun production  law of diminishing marginal returns  Recommended Citation:VARIABLE FACTOR OF PRODUCTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 20002018. [Accessed: March 17, 2018].
Search Again?
Back to the GLOSS*arama


INFLATIONARY EXPECTATIONS, AGGREGATE DEMAND DETERMINANT One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in the inflationary expectations causes an increase (rightward shift) of the aggregate curve. A decrease in the inflationary expectations causes a decrease (leftward shift) of the aggregate curve. Other notable aggregate demand determinants include interest rates, federal deficit, and the money supply.
Complete Entry  Visit the WEB*pedia 


BLACK DISMALAPOD [What's This?]
Today, you are likely to spend a great deal of time at an auction hoping to buy either storage boxes for your winter clothes or several magazines on time travel. Be on the lookout for the happiest person in the room. Your Complete Scope
This isn't me! What am I?


The average bank teller loses about $250 every year.


"If football taught me anything about business, it is that you win the game one play at a time."  Fran Tarkenton, Football Player


NASDAQ National Assocation of Securities Dealers Automated Quote System


Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback

