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The First Fundamental Theorem of Welfare Economics states that assuming perfectly competitive markets and no externalities, The competitive equilibrium, where supply equals demand, maximizes economic
The First Fundamental Theorem of Welfare Economics states that assuming perfectly competitive markets and no externalities, "The competitive equilibrium, where supply equals demand, maximizes economic efficiency." If we use Pareto Efficiency as our metric for economic efficiency, re-write the First Fundamental Theorem of Welfare Economics specifically, and show how this is exemplified in the case of the electric vehicle market, as illustrated above.
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