The first fundamental theorem of welfare economics states that

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The first fundamental theorem of welfare economics states that under certain conditions, a competitive equilibrium is Pareto optimal. This means that in a perfectly competitive market, where there are no externalities, public goods or monopolies, the market will reach a state where production and consumption are at their most efficient points and no individual can be made better off without making someone else worse off. However, this does not mean that all Pareto optima are competitive equilibria.

The First Fundamental Theorem of Welfare Economics States That