Review article

Free Market Economy Model

Dominika Crnjac Milić

Abstract

A model of economy relying on the free market principle is presented in this paper. In practice, in
addition to the primary model there is also a dual model. The quantity of produced goods is taken as the
primary variable, and calculated price is used as the dual variable. We will see to what extent economic
principles model the economy. It will be shown that in economic balance all companies behave like they
belong to a single large company which maximises its profit.

Keywords

Market; dual; model; economy; transponed vector; optimisation; profit; resource

Hrčak ID:

76188

URI

https://hrcak.srce.hr/76188

Publication date:

9.12.2011.

Article data in other languages: croatian

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