Consider the following statements:
(A) If a market generates a side effect or externality then the market solutions are inefficient.
(B) If a market is efficient, then the quantity produced in the market maximise both producer's and consumer's surplus.
(C) Consumer's surplus is the buyer's WTP minus the seller's cost.
(D) Smith's invisible hand concept implies that competitive market outcome generates equity among the members in the society.
(E) Competitive market equilibrium is Pareto efficient.
Choose the correct answer from the options given below:
1
(A), (B), (E) only
2
(A), (B), (D) only
3
(A), (E) only
4
(B), (D), (E) only