1. True or False

a.If all the markets for inputs and outputs are perfectly competitive, then a homothetic production technology exhibits increasing returns-to-scale if and only if it exhibits economies-of-scale.

b. Theoretically there can be some kind of Giffen inputs for a profit maximizing firm, a fall in the price of which leads to a fall in demand, just as in the theory of utility maximizing consumers.

c. In a market, when the monopolist practices third degree price discrimination, the social surplus will increase or at least remain unchanged compared with the case when the monopolist implements uniform pricing.

d. Second Fundamental Theorem of Welfare Economics implies that in the pure exchange economy, a competitive market equilibrium is Pareto efficient given that consumers preferences are well-behaved.

e. Arrows Impossibility Theorem shows that Majority rule is a good way to aggregate individual preferences into social preferences.

f. The distributional consequences of the assignment of property rights are eliminated as long as there is no transaction cost and the property right is well-defined.

g. Any socially optimal allocation must be Pareto optimal.

h. In a market with two firms, the optimal profit from the merged firm should be at least as high as the sum of profits from the two firms competing in the market.

i. Every point on the short-run total cost curves corresponds to a point on the long-run total cost curve.

j. In the GC tax scheme, each agent states a public good net valuation, . Then a pivotal person need pay a tax of ( i=/=j ) i to change the outcome from supply to not supply.