Problem
1. How does the production contract curve relate to Pareto efficiency?
2. How does the production possibilities frontier relate to the marginal rate of transformation?
3. What conditions are required for the First Welfare Theorem to hold?
4. What does the Second Welfare Theorem predict?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.