z 2
z 2
z2
z 1
z 1
z 2
z 2
z1
z 1
z 1
DSMtoaariptt atwhgiea.t.hi.onapanftndoimraaraugbamlioitnwrinateortroygv(veazta1l.,ul.wu.ee1)oo-fsfpwwa11c.e...
the conditional demand curve
The Firm and the Market
Conditional Input
Demand
Output Supply
OOrrddiinnaarryy IInnppuutt
DDeemmaanndd
The solution to the first-stage problem ...
Choose z to minimise
black box problems
The Firm
Production Optimisation Comparative Statics
The Firm and the Market
Conditional Input
Demand
Output Supply
Ordinary Input
Demand
The second -stage problem
C(w, Q) := min wi zi
Specifieadnd, presumably... vectoroouftput level input prices
...optimal input demands as a function of exogenous variables
z1* = H1(w,Q) z2* = H2(w,Q) ... ... ... ...