Pareto Efficiency in Euclidean Spaces and Its Applications in Economics

The aim of the first part of this paper is to show whether a set of Proper Efficient Points and a set of Pareto Efficient Points coincide in Euclidean spaces. In the second part of the paper, we show that supporting prices, which are actually strictly positive, do exist for a large class of exchange economies. A consequence of this result is a generalized form of the Second Welfare theorem. The properties of the cones’ bases are significant for this purpose.