Pareto efficiency
What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems?
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(Source: http://www.campusprogram.com/reference/en/wikipedia/p/pa/pareto_efficiency.html )
We call an allocation of resources as Pareto efficient if there is no way that some individual can be made better off without making any other individual worse off. A change that can make at least one individual better off, without making any other individual worse off is ...
Solution Summary
The solution explains what Pareto efficiency is and why economists use this criterion for comparing alternative economic systems.
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