Which of the following is not true in the case of second theorem of welfare economics?
1
If consumers exhibit convex preferences, every pareto efficient allocation is a possible competitive equilibrium in a pure exchange economy.
2
In an economy involving production, the convexity of production sets ensures that a pareto efficient allocation can be achieved as a market equilibrium.
3
It holds when there are increasing returns to scale.
4
More than one of the above
5
None of the above