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Unformatted text preview: B) Taxes, subsidies, and price supports can change welfare IV) Applications of the competitive model: Externalities and Public Goods A) Competitive equilibrium is inefficient: Vertical sum of demand/supply curves B) Achieving the social optimum through taxes, subsidies, and quotas* V) General Equilibrium A) 2 person, 2 good exchange economies: Edgeworth box* 1) Pareto efficiency: MRS A = MRS B 2) Dictator 3) Bargaining 4) Competitive equilibrium B) First Welfare Theorem C) Second Welfare Theorem D) Production: comparative advantage...
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This note was uploaded on 12/10/2011 for the course ECON 401 taught by Professor Burbidge,john during the Winter '08 term at Waterloo.
- Winter '08