=+f. Based on what you have done in parts A and B, evaluate the following statement: Nonconvexities

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=+f. Based on what you have done in parts A and B, evaluate the following statement: “Nonconvexities may cause a nonexistence of competitive equilibria in general equilibrium economies, but if an equilibrium exists, it results in an efficient allocation of resources. However, only in the absence of non-convexities can we conclude that there always exists some lump-sum redistribution such that any efficient allocation can also be an equilibrium allocation.” (Note: Your conclusion on this holds well beyond the examples in this problem for reasons that are quite similar to the intuition developed here.)

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