Multiple Choice
The first fundamental theorem of welfare economics states that
A) under certain conditions, a competitive equilibrium is Pareto-optimal.
B) under certain conditions, a Pareto optimum is a competitive equilibrium.
C) a competitive equilibrium is always Pareto-optimal.
D) a Pareto optimum does not have to be a competitive equilibrium.
E) a Pareto optimum is always a competitive equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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