Abstract

Under production uncertainty, it is shown that the LeChatelier principle holds for the derived demand of the ith factor if it is technically complementary (competing) with the riskincreasing (risk-reducing) quasi-fixed input and absolute risk aversion is decreasing. In addition, the LeChatelier principle for the output supply function holds if the quasi-fixed factor is an inferior (normal) and risk-increasing (risk-reducing) input and partial risk aversion is increasing.

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