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Question

State true or false:
F(x,y)=ey/x+lnxlny is homogeneous function of degree zero.

A
True
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B
False
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Solution

The correct option is A True
F(x,y)=ey/x+lnxlnyF(tx,ty)=ety/tx+lntxlnty=ey/x+lnx+lntlntlny=ey/x+lnxlny=t0F(x,y)
Hence, degree is 0.

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