Homogeneous Production Function| Economics
A function is said to be homogeneous of degree n if the multiplication of all the independent variables by the same constant, say λ, results in the multiplication of the dependent variable by λn. Thus, the function Y = X2 + Z2 is homogeneous of degree 2 since (λX)2 + (λZ)2 = λ2 (X2 + Y2) = λ2Y A function [...]