Step 1: Understanding the concept of homogeneity.
A function \( f(x, y) \) is said to be homogeneous of degree \( n \) if it satisfies the following relation for all \( \lambda \):
\[
f(\lambda x, \lambda y) = \lambda^n f(x, y)
\]
For this question, we are given that the function is homogeneous of degree 4, so we have:
\[
f(\lambda x, \lambda y) = \lambda^4 f(x, y)
\]
Step 2: Applying Euler's theorem for homogeneous functions.
Euler's theorem for homogeneous functions states that for a continuously differentiable homogeneous function of degree \( n \), we have the following relation:
\[
x \frac{\partial f(x, y)}{\partial x} + y \frac{\partial f(x, y)}{\partial y} = n f(x, y)
\]
In this case, since the degree of homogeneity is 4, we get:
\[
x \frac{\partial f(x, y)}{\partial x} + y \frac{\partial f(x, y)}{\partial y} = 4 f(x, y)
\]
Step 3: Conclusion.
Thus, the correct answer is (C) \( x \frac{\partial f(x, y)}{\partial x} + y \frac{\partial f(x, y)}{\partial y} = 4 f(x, y) \).