Question: Use graphical analysis to explain and show the general equilibrium analysis of a sample economy in which there are 2 factors of production, 2 commodities,
Use graphical analysis to explain and show the general equilibrium analysis of a sample economy in which there are 2 factors of production, 2 commodities, and 2 consumers is achieved. a. Describe and show graphically how exchange efficiency, input efficiency and product output mix efficiency are achieved within the framework of competitive markets. b. Use the Walrasian system to explain how you are going to determine the prices of the 2 commodities, wages and the rental rate of capital.
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