Any Competitive Equilibrium Is Pareto Efficient Because,with a Competitive Equilibrium

question 6

Multiple Choice

Any competitive equilibrium is Pareto efficient because,with a competitive equilibrium,

• A) the marginal rates of substitution are equal for all consumers.
• B) the price line is the contract curve.
• C) mutual gains from trade exist.
• D) the slope of the price line equals the ratio of the MRS for all consumers.

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