Economics 214 Lecture 29 Multivariate Calculus

Homogeneous Function

Cobb-Douglas Function

Euler’s Theorem Homogeneity of degree 1 is often called linear homogeneity. An important property of homogeneous functions is given by Euler’s Theorem.

Euler’s Theorem

Proof Euler’s Theorem

Division of National Income

Properties of Marginal Products

Arguments of Functions that are Homogeneous degree zero

First Partial Derivatives of Homogeneous Functions

Proof of previous slide

Homothetic function

Example homothetic function