Limits, resources and distributional trade-offs: Structural constraints and opportunities

In this contribution we have focused on an economy with a single primary factor, homogeneous labour, and have investigated situations where the supply of this primary factor is fixed. We showed that in this context it is possible to derive exact analytical relations between sets of selected inputs and outputs. That is, we were able – with a fixed amount of the scarce factor – to indicate precisely how large a reduction of inputs in particular processes should be to increase specific elements of the final consumption bundle.