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Exercise 8.7 · Q3

Q.Prove that g(x,y)=xlog⁡(yx)g(x,y)=x\log\left(\dfrac{y}{x}\right) is homogeneous; what is the degree? Verify Euler's Theorem for gg.

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Test g(λx,λy)g(\lambda x,\lambda y) for the degree, then compute gx,gyg_x,g_y directly and confirm xgx+ygy=gxg_x+yg_y=g (degree 11).

Step 1. Test homogeneity. g(λx,λy)=λxlog⁡ ⁣(λyλx)=λxlog⁡ ⁣(yx)=λ g(x,y)g(\lambda x,\lambda y)=\lambda x\log\!\left(\dfrac{\lambda y}{\lambda x}\right)=\lambda x\log\!\left(\dfrac yx\right)=\lambda\,g(x,y) (the λ\lambda's inside the log cancel). So gg is homogeneous of degree 11.

Step 2. Compute gxg_x. Write g=xlog⁡y−xlog⁡xg=x\log y-x\log x. gx=log⁡y−(log⁡x+x⋅1x)=log⁡y−log⁡x−1=log⁡ ⁣(yx)−1\quad g_x=\log y-\big(\log x+x\cdot\dfrac1x\big)=\log y-\log x-1=\log\!\left(\dfrac yx\right)-1.

Step 3. Compute gyg_y. gy=x⋅1y=xyg_y=x\cdot\dfrac1y=\dfrac xy.

Step 4. Form xgx+ygyxg_x+yg_y.

xgx=xlog⁡ ⁣(yx)−x,ygy=y⋅xy=x.xg_x = x\log\!\left(\frac yx\right)-x, \qquad yg_y = y\cdot\frac xy = x. …

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