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Evaluate the following statements having to do with the “Fundamental Theorem of Welfare Economics” and then select the best answer from among A) through E) below. 1) It implies that if society’s goal

Evaluate the following statements having to do with the "Fundamental Theorem of Welfare Economics" and then select the best answer from…

Evaluate the following statements having to do with the “Fundamental Theorem of Welfare Economics” and then select the best answer from among A) through E) below.
1) It implies that if society’s goal is to have a just and fair society, then monopolies must be regulated.
2) Roughly, it says that if all markets are competitive markets (each with many buyers and sellers), then the economy will be efficient.
3) Roughly, it says that monopoly pricing, taxes, price ceilings, price floors and quotas all create welfare costs.
4) It says that perfect competition will create a just and fair society.
A) Statements 1) and 3) are correct.
B) Statement 4) is correct, and all the others are misleading or wong.
C) None of A), B), D) or E) are good answers.
D) Statement 2) is correct and all the others are misleading or wrong.
E) Statements 2) and 4) are correct and all the others are misleading or wrong.

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