A competitive equilibrium is Pareto efficient because at the competitive equilibrium,
A) prices have been allowed to adjust.
B) there are no further gains from trade.
C) the final outcome is different from the original inefficient endowment.
D) all members of society can be made better off.
Correct Answer:
Verified
Q52: Any competitive equilibrium is Pareto efficient because,with
Q53: For a given set of prices,two consumers
Q54: A competitive equilibrium is not Pareto efficient
Q55: Assume a government likes a particular equilibrium
Q56: Suppose two people start with an initial
Q58: A government policy of providing free public
Q59: In a competitive marketplace,prices adjust until
A) MRS's
Q60: Consider a society consisting of just a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents