When the First Fundamental Theorem of Welfare Economics doesn't hold,there is a market failure.

Question

Quizplus · Accepted Answer

The First Fundamental Theorem of Welfare Economics states that in a perfectly competitive market, equilibrium price and quantity will result in maximum social welfare. If this theorem does not hold, it means that the market is not achieving the most efficient allocation of resources and there is a market failure.

When the First Fundamental Theorem of Welfare Economics Doesn't Hold,there