What is Pareto optimality?
What will be an ideal response?
Pareto optimality (or Pareto efficiency) is a condition in which no change is possible that will make some members of society better off without making some other members of society worse off.
Economics
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The First Theorem of Welfare Economics can be expressed as
A) the competitive equilibrium results only when no transactions costs exist. B) the competitive equilibrium does not involve reallocation of endowments. C) any efficient allocations can be achieved by competition. D) the competitive equilibrium is efficient.
Economics
In a perfectly competitive market,
A) firms can freely enter and exit. B) firms sell a differentiated product. C) transaction costs are high. D) All of the above.
Economics