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Business, 18.12.2020 17:00 nsankey8032

There are 1 unit of consumers. There are 1 unit of firms. There are three goods: good 0, good 1, good 2. Good 0 is an inconsumable input whereas good 1 and 2 are consumable outputs. Each firms has access to two production functions f1 and f2. F1(z1) = 2z1 turns z1 units of good 0 into 2z1 units of good 1. F2(z2) = 2z2 turns z2 units of good 0 into 2z2 units of good 2. Find the competitive equilibrium consumption levels.

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