A Competitive Equilibrium Is Pareto Efficient Because at the Competitive

question 83

Multiple Choice

A competitive equilibrium is Pareto efficient because at the competitive equilibrium,

• A) prices have been allowed to adjust.
• B) there are no further gains from trade.
• C) the final outcome is different from the original inefficient endowment.
• D) all members of society can be made better off.

---

Definitions:

Original Offer

The initial proposal or terms presented during negotiations or when making a deal, before any modifications are made.

Communicated By Words

Information or messages that are transmitted or conveyed through spoken or written language.

Conduct

The manner in which a person behaves, especially in a particular setting or context.

Great Minneapolis Surplus Store

A widely cited legal case involving offer and acceptance in contract law.