Definition
Homogeneous of degree 0:
for all 
Homogeneous of degree n:
, 
If 
is a 
(continuously differentiable) homogeneous function, then the level curves of f has constant slope along each ray from the origin.
For production function:
- Homogeneity of degree k > 1
increasing return to scale - Homogeneity of degree k = 1 constant return to scale
- Homogeneity of degree k < 1 decreasing return to scale
See also:
Note
- A function can be homogeneous in one variable, say f is homogeneous of degree 1 in x:
