(Solved): The First Welfare Theorem says that [2.5] (a) if an externality can be owned and traded at zero tran ...

The First Welfare Theorem says that [2.5] (a) if an externality can be owned and traded at zero transaction costs, then bargaining will lead to a Pareto efficient allocation, regardless of the initial distribution of property rights. (b) perfect price discrimination will lead to a Pareto efficient production level. (c) profit is zero. (d) any trade leads to an allocation that is Pareto efficient. (e) any perfectly competitive equilibrium is Pareto efficient.