HOMOGENEOUS OF DEGREE ONE: A property of an equation the exists if independent variables are increased by a constant value, then the dependent variable is increased by the same value. In other words, if the independent variables are doubled, then the dependent variable is also doubled. This property often surfaces in the analysis of production functions. A production function homogeneous of degree one is said to have constant returns to scale. See also | homogeneous | production function | independent variable | dependent variable | constant returns to scale | homogeneous of degree n | homogeneous of degree zero | economies of scale |
