Question

2. F(x1,x2)= bxo+ b1x1+ b3 x1, X2 Is this a homogenous function? If yes, find the degree of homogeneity. If not, provide proper explanation

Answer 1

Answer:

It is a homogeneus function of degree 1.

Step-by-step explanation:

Let us take $F(x_1,x_2)=b_0x_2+b_1x_1+b_2x_2$ and a constant $\lambda \in \mathbb{R}$. It holds that

$F(\lambda x_1, \lambda x_2)=b_0\lambda x_2+b_1\lambda x_1+b_2\lambda x_1=\lambda(b_0x_2+b_1x_1+b_2x_2)=\lambda F(x_1,x_2)$

which shows that $F(x_1,x_2)$ is homogeneus of degree 1.