The First Theorem of Welfare Economics (that a competitive equilibrium is Pareto efficient) may not hold for economies with production if Choose one or more: 1)there are decreasing returns to scale. 2)there are increasing returns to scale. 3)there are consumption externalities. 4)all firms act as competitive profit maximizers. 5)there are production externalities.

The First Theorem of Welfare Economics (that a competitive equilibrium is Pareto efficient) may not hold for economies with production if Choose one or more: 1)there are decreasing returns to scale. 2)there are increasing returns to scale. 3)there are consumption externalities. 4)all firms act as competitive profit maximizers. 5)there are production externalities.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 15QP

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