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Consider a firm that produces one output y with a production function f(x1, x2, x3, x4). The input price vector is w. Denote this firm's
Consider a firm that produces one output y with a production function f(x1, x2, x3, x4). The input price vector is w. Denote this firm's cost minimizing conditional input demand by x(w, y). Claim: x(w, y) is homogeneous of degree 0 in input prices. Prove this claim.
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