According to the theory of welfare economics, the necessary conditions for a Pareto efficiency allocation of resources are: O a. Price equals marginal cost b. All of the options given are true O c. The marginal rate of substitution of one commodity for another in consumption is equal to the marginal rate of transformation of those two commodities in production, i.e., MRSab = MRTab d. The marginal rate of substitution of one commodity for another in consumption is equal to the marginal rate of transformation of those two commodities in production, i.e., MRSab = MRTab AND Price equals marginal cost e. No person can be made better off without making another person worse off