10. There are four statements about welfare economics. Which of the following statement is TRUE? A. Social optimal allocations do not need to be Pareto optimal. B. A fair allocation could be Pareto inefficient. C. Coase theorem states that if all agents' preferences are well-behaved, then the efficient level of the externality generating commodity is produced no matter which agent is assigned the control right. D. Groves and Clarke mechanism of truth revelation does not necessarily generate a Pareto efficient outcome.

10. There are four statements about welfare economics. Which of the following statement is TRUE? A. Social optimal allocations do not need to be Pareto optimal. B. A fair allocation could be Pareto inefficient. C. Coase theorem states that if all agents' preferences are well-behaved, then the efficient level of the externality generating commodity is produced no matter which agent is assigned the control right. D. Groves and Clarke mechanism of truth revelation does not necessarily generate a Pareto efficient outcome.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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