Conditional input demands are homogeneous of degree zero in input prices.

Name: Conditional input demands are homogeneous of degree zero in input prices.
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Quizplus · Accepted Answer

Conditional input demands refer to the demand for inputs given the level of output. Homogeneity of degree zero in input prices means that if all input prices (e.g. wages, rent) are multiplied by the same constant, the conditional input demands will not change. This property holds true and is a defining feature of the theory of production.

Conditional Input Demands Are Homogeneous of Degree Zero in Input