Acta Universitatis Danubius. Œconomica, Vol 8, No 4 (2012)

Abstract

The consumption efficiency, or production respectively, are of particular importance in the view of Pareto efficiency. The classical analysis for two goods or two factors of production, is based on the Edgeworth’s box that allows determining the optimal quantity, and price equilibrium. The analysis which will follow, will deal this problem for the case of n goods or inputs, obtaining a general method for determining the optimal quantities, namely the equilibrium price using a series of relatively basic geometric tools.