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Constant returns to scale |
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Constant returns to scaleA property of a production function such that scaling all inputs by any positive constant also scales output by the same constant. Such a function is also called homogeneous of degree one or linearly homogeneous. CRTS is a critical assumption of the H-O Model of international trade. Contrasts with increasing returns and decreasing returns.Similar MatchesLoan ConstantLoan ConstantThe yearly percentage of interest which remains the same over the life of an amortized loan, based on the monthly payment in relation to the principal originally loaned. For example: A $1000 loan at 9% interest for 20 years can be amortized at $9.00 per month. The constant interest rate is figured by finding one year's payments ($9.00 x 12 months = $108,00), and expressing this amount as a percentage of the principal originally borrowed (10.8% of $1000). Constant elasticity of substitution functionConstant elasticity of substitution functionSee CES function Constant dollar planConstant dollar planMethod of purchasing securities by investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is high, thus reducing the overall cost. Constant dollarsConstant dollarsDollars of a base year used as a general measure of purchasing power. Constant pricesConstant pricesSee constant dollars. Further Suggestionsconstant dollar planConstant yield method Constant ratio plan Constant growth model Constant dollars |
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