The fact that any pareto efficient equilibrium can be achieved through competition by adjusting endowments is called

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The Second Welfare Theorem states that any Pareto efficient allocation can be reached through a competitive equilibrium, given appropriate redistribution of initial endowments. This contrasts with the First Welfare Theorem, which asserts that any competitive equilibrium leads to a Pareto efficient allocation without specifying how to reach any particular Pareto efficient outcome.

The Fact That Any Pareto Efficient Equilibrium Can Be Achieved