Question: Show that the allocation which solves the first-order condition from Eq. (3.7) for a social optimum satisfies the second-order conditions. Equation 3.7 -C(e) = D'(E)

Show that the allocation which solves the first-order condition from Eq. (3.7) for a social optimum satisfies the second-order conditions.

Equation 3.7

-C(e) = D'(E) i=1,.... (3.7)

-C(e) = D'(E) i=1,.... (3.7)

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