Shephard's lemma is a result in microeconomics having applications in the theory of the firm and in consumer choice. The lemma states that if indifference curves of the expenditure or cost function are convex, then the cost-minimizing point of a given good ( i {\displaystyle i} ) with price p i {\displaystyle p_{i}} is unique.
Shephard's lemma is a result in microeconomics having applications in the theory of the firm and in consumer choice. The lemma states that if indifference curves of the expenditure or cost function are convex, then the cost-minimizing point of a given good ( i {\displaystyle i} ) with price p i {\displaystyle p_{i}} is unique.
Source: Wikipedia "Shephard's lemma" · CC BY-SA 4.0
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