Recall a fact : A function F(x,y) is said to be homogeneous function of degree n if
F(ax,ay) = an F(x,y)
Now in our problem F(x,y)= max{y/x,x}
It means F(x,y)=y/x OR F(x,y)=x
Case i) If F(x,y) =y/x
Now F(ax,ay)=ay/ax=y/x
=a0F(x,y)
In this case F(x,y) is a homogenous function of degree zero.
Case ii) If F(x,y)=x
Now F(ax,ay)=ax
=a1F(x,y)
In this case F(x,y) is a homogeneous function of degree 1
Therefore by i) and ii) case we can say F(x,y) is a homogeneous function.
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