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Conditional Factor Demand


Definition

The conditional factor demand (or conditional demand correspondence, conditional demand function), denoted by z(w, q), is the optimizing set of input of CMP optimization.


"Conditional" means that z(w, q) is conditional on q, the output level to be produced.


It can be calculated by applying Shephard's Lemma on cost function


Proposition

For all i, is non-increasing in


Note


Example