Euler's Homogenous Function Theorem
Homogenous Functions A homogenous function of order $n$ satisfies: $$ f(\lambda x_1, \lambda x_2, \ldots, \lambda x_m) =\lambda^n f(x_1, x_2, \ldots, x_m) $$ For e.g. $$ f(x,y) = \sqrt{x} y^2 $$ is homogenous of order $n = 3/2$ . However: $$ f(x,y) = \sqrt x y^2 + x^2 y^2 $$ is not a homogenous function… Continue reading Euler's Homogenous Function Theorem