If There Are Consumption Externalities, Then a Competitive Equilibrium Is

question 17

True/False

If there are consumption externalities, then a competitive equilibrium is not necessarily Pareto optimal.

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Definitions:

Offshoring

The relocation of a company's business process or manufacturing to another country to reduce costs or explore new market opportunities.

Contract Manufacturer

A company hired to produce goods on behalf of another organization, providing specialized manufacturing services.

Bullwhip Effect

A phenomenon where inaccurate or distorted demand information in the supply chain causes drastic swings in inventory levels upstream.