The Optimal Producers’ Adjustment Trajectory

Abstract

The trajectories illustrating the necessary changes in the production sphere, which are caused by the necessity or the wish of producers, who adjust their activities to the given requirements, are analyzed in the paper. The producers’ activities are modeled in the Debreu economy, while the requirements are given analytically, by using the linear functionals. If the producers change their plans of action due to the considered trajectories, equilibrium in the economy will be kept, although the initial state of equilibrium can be replaced by the other one. In the set of trajectories under study, the preference relation is defined. Under some assumptions, the maximal element of the above relation, so called the best producers’ adjustment trajectory, indicates the best path of changes in producers’ activities, under the criterion of losses minimization.