For a competitive equilibrium, this line must be tangent to the individual's indifference curve.

In fact, in some industries higher oil costs are actually restoring competitive equilibrium.

In a competitive equilibrium, a proportional wage income tax discourages work.

First, they ensure that the initial position of competitive equilibrium is indeed an equilibrium.

But in competitive equilibrium prices are performing a second role.

With no film tax, competitive equilibrium is at E ';.

This is due to the zero-profit requirement of a perfectly competitive equilibrium.

The second states the converse, that any efficient allocation can be sustainable by a competitive equilibrium.

Yet there are important critiques of general competitive equilibrium.

Like general competitive equilibrium, this theory too is beautiful but, I think, deeply flawed.