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Any Competitive Equilibrium Is Pareto Efficient Because,with a Competitive Equilibrium

Question 6

Multiple Choice

Any competitive equilibrium is Pareto efficient because,with a competitive equilibrium,


A) the marginal rates of substitution are equal for all consumers.
B) the price line is the contract curve.
C) mutual gains from trade exist.
D) the slope of the price line equals the ratio of the MRS for all consumers.

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