00:01
Competitive equilibrium is pareto efficient.
00:04
In a foreign economy, all the assumptions of this theorem are valid.
00:08
Then we need not think about redistribution of endowments.
00:13
Justify whether or not this is true or false.
00:17
So this will be true.
00:19
A competitive equilibrium is pareto efficient.
00:22
No individual can be made better off without making someone else worse off.
00:51
If all the assumptions are valid, the initial distribution of endowments is irrelevant to the final outcome.
00:57
In a competitive market, individuals will trade until they reach an equilibrium where no further trades can make anyone better off.
01:54
There's no need to think about redistribution of endowments.
01:58
In a general equilibrium framework, a free good is a good that is not scarce, meaning that its supply exceeds its demand at zero price...