ABSTRACT
In discussions of the Factor Price Equalization theorem it is customary to assume that the world equilibrium is unique. This tradition leaves it unclear just how the theorem should be formulated to accommodate a possible multiplicity of equilibria. It is my purpose in the present note to extend the relevant theory by allowing for multiple equilibria. For the most part, I confine attention to the case of two factors of production (available as fixed endowments) and two final products, for which a diagrammatic treatment suffices. Again for the most part, I confine attention to the case of constant returns to scale and perfectly competitive markets. However, several extensions of the analysis are indicated in the final section.1
