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.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.2P

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