Fiona is not convinced that the idea of a general competitive equilibrium makes sense. She reasons as

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Fiona is not convinced that the idea of a general competitive equilibrium makes sense. She reasons as follows: "If people behave according to the assumption of perfect competition, everyone is a price taker, and no one is a price maker. Therefore, there is no way for prices to reach their general equilibrium levels."
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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