We want to check first fundamental theorem of welfare

6. 1) 2) 3) (10pts) We want to check First Fundamental Theorem of Welfare economics (FFTW) and Second Fundamental Theorem of Welfare economics (SFTW) again, considering nonstandard assumptions below respectively. What are FFTW and SFTW'? Suppose that there exist consumption externalities. Which theorem does not hold? (It does not mean that you choose only one. Both theorems may or may not hold) Use the example of smoke that you learned in the extemalities chapter and argue your answer. Suppose that rms have nonconvex technologies. Which theorem does not hold? (It does not mean that you choose only one. Both theorems may or may not hold) Use the diagram that you learned in the production chapter and argue your answer. When you say that an allocation is (or is not) Pareto e-'icient or Competitive equilibrium, you should explain the reason