General Economic Equilibrium

  • R. G. D. Allen


General equilibrium of production and exchange is developed here under static conditions of “pure competition”, in the sense that no individual (consumer or firm) is in a position to influence prices directly. Prices are parameters, given to consumers and firms, to be determined only by market conditions. Pure competition does not imply that there is “free entry” into any group of producers; this is a separate concept and conditions for “free entry” may or may not be added to those of pure competition.


Production Function Consumer Good Constant Return Upward Shift Mathematical Economic 
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© R. G. D. Allen 1959

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  • R. G. D. Allen

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