An input i is called normal its demand increases with output, that is, Dyx* (w, y) >

Question:

An input i is called normal its demand increases with output, that is, Dyx* (w, y) > 0. Otherwise (Dyx* (w, y) < 0, i is called an inferior input. Show that an input i is normal if and only if marginal cost Dyc [w, y] is increasing in wi.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: