The first theorem of welfare economics implies that:
A)a competitive equilibrium exists in most cases.
B)the competitive equilibrium is Pareto- optimal when it exists.
C)there are positive transaction costs.
D)all gains from trade are realized.

Question

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The Answer of The first theorem of welfare economics implies that:
A)a competitive equilibrium exists in most cases.
B)the competitive equilibrium is Pareto- optimal when it exists.
C)there are positive transaction costs.
D)all gains from trade are realized.

The First Theorem of Welfare Economics Implies That