Producer Theory & Existence of equilibrium
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Producer Theory & Existence of equilibrium

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Question 1 (Producer Theory) -State, explain and justify the propositions which constitute Arrow-Debreu (or neoclassical) producer theory (both the cost minimizing and profit maximizing versions). You may use prose, and/or diagrams and/or formal mathematics. Comment briefly on the complications which can arise when producers are operating under conditions of increasing returns to scale.

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