| Popis: |
We consider individual consumer–producers who operate within a perfectly competitive market economy with transaction costs, presenting several propositions that characterize the optimal production and consumption plans of such a consumer–producer. First, we show that under rather sparse conditions on production technologies and consumer preferences, there exists a solution to the consumer–producer optimization problem if transaction costs are asymptotically high. Second, under strengthened properties on consumer preferences, there exists such a solution, even in the absence of transaction costs. Third, we discuss the conditions under which a consumer–producer specializes to different degrees. These results generalize the existing results in the literature. |
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