Explain the difference between the two economic scenarios

Reference no: EM131483933

Question: In both the general market equilibrium scenario and in the case of an entrepreneur who is a perfectly discriminating monopolist and a perfectly discriminating monopsonist, the objective function is identical.

(a) Let the demand functions for final commodities be p = c - Dx, where D is a symmetric positive demidefinite matrix; let the input supply function be s = b + E y, where E is a symmetric positive definite matrix. Define the primal objective function of a general market equilibrium scenario and of an entrepreneur who is a perfectly discriminating monopolist and a perfectly discriminating monopsonist.

(b) Explain the difference between the two economic scenarios.

Reference no: EM131483933

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