The second fundamental theorem of welfare economics tells us that every Pareto-optimal allocation for an economy can be achieved as a competitive equilibrium for an appropriately defined distribution of income.

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The second fundamental theorem of welfare economics states that every Pareto-efficient allocation of resources can be achieved through a competitive equilibrium with an appropriate distribution of income. This is a cornerstone of the theory of market efficiency and is widely accepted by economists as an important principle.

The Second Fundamental Theorem of Welfare Economics Tells Us That