How one economy fits together.

Synthetic English narration.

Households, labor and different firms.
Households supply labor and demand goods. Firms differ in productivity and use production inputs plus fixed operating labor, with capital rented at a given price.

Competition connects prices and demand.
Within each sector, Cournot competition links market shares, elasticities, markups, and prices. Relative prices allocate demand across sectors and among their operating firms.

The whole economy must fit.
Output and wages adjust so production labor plus fixed labor equals household labor supply. Profit-based exits change the operating set, so these conditions are solved again.

Two periods, linked firm identities.
Solve two periods separately, each starting from all potential firms. Productivity changes, phi stays fixed, and the same firm identities link the employment comparison.