perfect competion, Macroeconomics

discuss the contention that the existance of a labour market in a perfect competion is a fallacy
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Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0