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

It is a homogeneus function of degree 1.

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.