Question: An input i is called normal its demand increases with output, that is, Dyx* (w, y) > 0. Otherwise (Dyx* (w, y) < 0, i

An input i is called normal its demand increases with output, that is, Dyx* (w, y) > 0. Otherwise (Dyx* (w, y) < 0, i is called an inferior input. Show that an input i is normal if and only if marginal cost Dyc [w, y] is increasing in wi.

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