When There Is Production, a Competitive Equilibrium Is Not Pareto

question 21

True/False

When there is production, a competitive equilibrium is not Pareto optimal unless there are increasing returns to scale.

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Definitions:

Usable Energy

The portion of energy in a system or process that can be effectively utilized to perform work.

Organized

Being arranged in an orderly, structured, and coherent manner, often referring to systems, entities, or activities.

Low Entropy

A state of order or predictability in a system, often associated with low levels of disorder and high levels of organization.

First Law

Often referred to as the law of energy conservation, stating that energy cannot be created or destroyed in an isolated system.