Euler's homogeneous function theorem

function with multiplicative scaling behaviour

Euler's theorem is one of the theorems Leonhard Euler stated: There are certain conditions where a firm will neither make a profit, nor operate at a loss. The theorem is also known as Euler's homogeneous function theorem, and is often used in economics.[1][2]


  1. "2.6: Euler's Theorem for Homogeneous Functions". Physics LibreTexts. 2017-01-25. Retrieved 2021-04-12.
  2. "Homogeneous functions: New characterization and applications". Transactions of A. Razmadze Mathematical Institute. 171 (2): 171–181. 2017-08-01. doi:10.1016/j.trmi.2016.12.006. ISSN 2346-8092.