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By Shephard's lemma, the optimal factor demand equation for the ith input price is given by (4.88) x i * = ∂ C (Y, p) / ∂ p i, where i = 1, 2.
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The Hessian matrix was developed in the 19th century by the German mathematician Ludwig Otto Hesse and later named after him. Metal Cutting Saw Machine,
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