The result that every competitive equilibrium is pareto efficient. a) the second fundamental theorem of welfare economics. b) Edgeworth's condition c) The first fundamental theorem of welfare economics d) Waras's law 2) Assume that there are two consumers ( A and B) in an economy that have preferences that can can be represented as cobb-douglas utility functions. Also assume that there are two firms that have concave production possibility frontiers over goods x and y . Which of the following conditions must be true for an allocation to be distributivity efficient? Select all that apply. a) all goods in the economy are consumed.
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The result that every competitive equilibrium is pareto efficient.
a) the second fundamental theorem of welfare economics.
b) Edgeworth's condition
c) The first fundamental theorem of welfare economics
d) Waras's law
2) Assume that there are two consumers ( A and B) in an economy that have preferences that can can be represented as cobb-douglas utility functions. Also assume that there are two firms that have concave
Which of the following conditions must be true for an allocation to be distributivity efficient? Select all that apply.
a) all goods in the economy are consumed.
b) producers must be operating on their production possibilities frontier.
c) all consumers must have marginal rates of substitution that are equal.
d) all producers must have marginal rates of transformation that are equal .
e) consumers must value goods at the margin at the same rate it costs society to produce them
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