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- Complementarity is defined as “the total economic value added by combining […] complementary factors in a production system [exceeding] the value that would be generated by applying these production factors in isolation.” Thus two assets are said to be complements when investment in one asset increases the marginal return on the other. On the contrary, assets are substitutes when investment in one does not effect the marginal return of the other. If the production process is described by the production function F ( x , y ) {\displaystyle F(x,y)} , where x {\displaystyle x} and y {\displaystyle y} are the amounts invested of the two assets, then it is possible to define formally the elasticity of substitution as σ x y = d ln ( y / x ) d ln ( M R T 12 ) = d ln ( y / x ) d ln ( F x / F y ) {\displaystyle \sigma _{xy}={\frac {d\ln(y/x)}{d\ln(MRT_{12})}}={\frac {d\ln(y/x)}{d\ln(F_{x}/F_{y})}}} If σ x y {\displaystyle \sigma _{xy}} is equal to 1, the assets are substitutes; if lower, complements; if higher antagonists.
We couldn't find any anagrams for the word complementary assets.
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complementally, complementalness, complementariness, complementarism, complementary, complementation, complementative, complementer, complementoid, complete
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"complementary assets." Anagrams.net. STANDS4 LLC, 2024. Web. 7 May 2024. <https://www.anagrams.net/complementary%20assets>.
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