"Any Social Planner Who Implements Efficient Outcomes Will Produce the Same

question 6

Multiple Choice

"Any social planner who implements efficient outcomes will produce the same output in a given market as the competitive market would." In addition to the conditions of the first welfare theorem, which of the following have to hold in order for the statement in quotes to be true?

• A)Consumer tastes are quasilinear.
• B)Consumer tastes are homothetic.
• C)Production frontiers are homothetic.
• D)Both (a) and (c).
• E)Both (b) and (c).
• F)None of the above.

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Definitions:

Operating Capacity

The maximum output that a company can produce and sell with its existing equipment and resources, without incurring unsustainable costs.

Marble

A metamorphic rock composed primarily of calcite or dolomite, known for its use in sculpture and as a building material.

Long-range Financial Planning

The process of determining a company's financial goals, strategies, and resources over a future period, typically spanning several years.

Analysis

A detailed examination of the elements or structure of something, typically as a basis for discussion or interpretation.