Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied?
A)We have to be able to represent the demand side of the economy by a representative consumer.
B)Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal.
C)Producer surplus is zero in the long run when all firms share the same technology.
D)(a) and (b) are true.
E)(b) and (c) are true.
F)(a) and (c) are true.
G)All of the above.
H)None of the above.

Question

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The Answer of Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied?
A)We have to be able to represent the demand side of the economy by a representative consumer.
B)Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal.
C)Producer surplus is zero in the long run when all firms share the same technology.
D)(a) and (b) are true.
E)(b) and (c) are true.
F)(a) and (c) are true.
G)All of the above.
H)None of the above.

Which of the Following Is True About Competitive Equilibria in Environments