Answer to Question #53078 in Other Economics for candy
theory of markets? What are the properties of a general competitive equilibrium? Why is it
considered a state of efficiency? What does efficiency, in the sense of a Pareto Optimum, mean?
Did he prove the existence of a general competitive equilibrium?
It is considered a state of efficiency, because in general equilibrium demand equals supply and there is no deadweight loss.
The efficiency, in the sense of a Pareto Optimum, means, that the existed situation can't be improved without the loss in any other factor.
The scientist proved the existence of a general competitive equilibrium, because it is a simplified model, which clearly explains the behavior of supply, demand, and prices in a whole economy with several or many interacting markets.
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