a) Briefly explain the market completeness assumption in the First Fundamental Theorem of Welfare Economics. b) Are employment and credit contracts complete? If so, how? If not, what aspects of these contracts are not complete? c) According to Bowles's adaptation of Eswaran and Kotwal's model, what determines the difference between economic positions? What are the differences between pure wage worker, small capitalist and pure capitalist?

a) Briefly explain the market completeness assumption in the First Fundamental Theorem of Welfare Economics. b) Are employment and credit contracts complete? If so, how? If not, what aspects of these contracts are not complete? c) According to Bowles's adaptation of Eswaran and Kotwal's model, what determines the difference between economic positions? What are the differences between pure wage worker, small capitalist and pure capitalist?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.8P

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