Indeterminacy, moreover, is not just a technical nuisance; it undermines the price-taking assumption of competitive models. Since arbitrary small manipulations of factor supplies can dramatically increase a factor's price, factor owners will not take prices to be parametric.
Indeterminacy moreover is not just a technical nuisance; it undermines the price-taking assumption of competitive models. Since arbit,rary small manipulations of factor supplies can dramatically increase a factor's, price, factor owners will not take prices to be parametric.