Author Question: The main point of the second theorem of welfare economics is that: A) efficiency is more ... (Read 164 times)

jwb375 · **on:** Jul 1, 2018

The main point of the second theorem of welfare economics is that:

A) efficiency is more important than equity.
B) efficiency may be achieved, but equity is not a feasible goal.
C) any attempt to achieve an equitable outcome must occur off the contract curve.
D) any equitable outcome can be achieved by reallocating the resources among the members of a society.

Question 2

Which of the following is true about the demand curve facing the dominant firm?

A) It equals market demand minus fringe firms' supply curve.
B) It is identical to market demand.
C) It equals market demand minus demand facing the fringe firms.
D) It is horizontal.