# Tag Info

### Find the competitive equilibrium of the following economy

There will be no equilibrium. Both technology and endowment play no role in the argument. Assume there would be an equilibrium with price system $(p_1,p_2,p_3)$. Notice that all prices must be ...
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Accepted

### Why is the competitive equilibrium price not well defined in this question?

Solution: Your approach is right but it wont work in this situation as there are certain avoidable fixed costs associated with your cost function. we are given the demand function as, $p^d(q)=100-q$ (...
• 181
1 vote
Accepted

### Competitive equilibrium in a two-person economy with substitutes and complements

Given the economy with two consumers: $u_1=\min(2m_1,h_1)$ and $u_2=m_2+h_2$ with endowment allocation $E=((60,40),(40,60))$, we observe the case where the price ratio is $\frac{p_M}{p_H}\in (0,1)$. ...
• 9,106
1 vote

• 12.5k
1 vote

### Computing the competitive equilibrium from the edgeworth box

The picture below presents the competitive equilibrium in different situations:
• 9,106
1 vote

### Pure exchange economy: Set of multiple equilibria endowments

The following article: TODA, A.A. and WALSH, K.J., 2017. Edgeworth box economies with multiple equilibria. Economic Theory Bulletin, 5(1), pp. 65-80. though not focusing on the properties of the ...

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