Three main conditions are necessary for general equilibrium to hold in a market economy. The first is that all consumers are in equilibrium, meaning that all mutually beneficial exchanges have been made between them. The second is that all inputs are employed in their best use, meaning that costs are as low as possible for everything being produced. The third condition is that

A.the right mix of goods is being produced.

B.the initial distribution of resource endowments is equitable so that the contract curve can be reached.

C. all citizens are risk averse in large decisions and risk lovers in small decisions.

D. the majority-voting rule applies in all public decisions.