Re: doubts

Posted by Granpa Simpson on Jun 14, 2014; 7:51am
URL: http://discussion-forum.276.s1.nabble.com/doubts-tp7592693p7592699.html

1)This is because first theorem of welfare economics states that every Walrasian equilibrium (Competitive Equilibrium) is Pareto efficient while the second theorem states that under conditions of monotonicity and convexity a desired Pareto Optimal allocation will lead to competitive outcome.
2) f'(x)=-2^-x which says that the function is decreasing, now the rate of decrease is given by f''(x)=2^-x>0, thus it is decreasing at an increasing rate..!!!