A Model of General Economic Equilibrium

The subject of this paper is the solution of a typical economic equation system. The system has the following properties: (1)Goods are produced not only from “ natural factors of production,” but in the first place from each other. These processes of production may be circular, i.e. good G₁ is produced with the aid of good G₂, and G₂ with the aid of G₁.(2)There may be more technically possible processes of production than goods and for this reason “ counting of equations ” is of no avail. The problem is rather to establish which processes will actually be used and which not (being “ unprofitable”).