The First Theorem of Welfare Economics (that a competitive equilibrium is Pareto efficient) may not hold for economies with production if Choose one or more: 1)there are decreasing returns to scale. 2)there are increasing returns to scale. 3)there are consumption externalities. 4)all firms act as competitive profit maximizers. 5)there are production externalities.

The First Theorem of Welfare Economics (that a competitive equilibrium is Pareto efficient) may not hold for economies with production if Choose one or more: 1)there are decreasing returns to scale. 2)there are increasing returns to scale. 3)there are consumption externalities. 4)all firms act as competitive profit maximizers. 5)there are production externalities.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 15QP

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