Production Functions

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August 31, 2024 4 min read Definitions

Hicks-Neutral Technical Progress: An Overview of Balanced Factor Productivity

Economics Finance Statistics Technical Progress Factor Productivity Economic Growth Production Functions Hicks-Neutrality

Hicks-neutral technical progress refers to a type of technical advancement where the average and marginal products of all production factors increase in the same proportion, maintaining balanced productivity. This concept is fundamental in economics, particularly in the study of growth models and production functions.

August 25, 2024 4 min read Definitions

Constant Returns to Scale: Understanding its Implications in Economics

Economics Returns-to-Scale Production Functions Economic Theories Input-Output Analysis Efficiency

Constant Returns to Scale (CRS) describes a situational framework in economics where the change in output is directly proportional to the change in inputs, resulting in the production efficiency remaining constant as the scale of production expands.