Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

The vector of changes in factor demands moves "opposite" the vector

<

of changes in factor prices. That is, dw dx


0.
Note that since the concavity of the cost function followed solely from
the hypothesis of cost minimization, the symmetry and negative semidefiniteness
of the first derivative matrix of the factor demand functions follow
solely from the hypothesis of cost minimization and do not involve any
restrictions on the structure of the technology.

You might also like