A simple two-input and one-output model is used to examine the effects of variable input price uncertainty on a quasi-fixed factor. These theoretical results, applied to a livestock firm, indicate that choice of the quasi-fixed factor depends upon the attitude of the farmer toward risk and whether the inputs are complements, substitutes, or independents.
Devadoss, S. and Choi, E. Kwan, "Input Price Uncertainty and Factor Demand" (1987). CARD Working Papers. 51.