Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied? O a. We have to be able to represent the demand side of the economy by a representative consumer. O b.Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal. O c. Producer surplus is zero in the long run when all firms share the same technology. O d.(a) and (b) are true. O e. (b) and (c) are true. O f. (a) and (c) are true. O g. All of the above.

Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied? O a. We have to be able to represent the demand side of the economy by a representative consumer. O b.Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal. O c. Producer surplus is zero in the long run when all firms share the same technology. O d.(a) and (b) are true. O e. (b) and (c) are true. O f. (a) and (c) are true. O g. All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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