According to the theory of welfare economics, the necessary conditions for a Pareto efficiency allocation of resources are:
a. The marginal rate of substitution of one commodity for another in consumption is equal to the marginal rate of transformation of those two commodities in production, i.e., MRSab = MRTab
B. The marginal rate of substitution of one commodity for another in consumption is equal to the marginal rate of transformation of those tiwo commodities in production, i.e, MRSab = MRTab AND Price equals marginal cost
c. All of the options given are true
d. Price equals marginal cost
e. No person can be made better off without making another person worse off