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.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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