Purchase Solution

Pareto efficiency

Not what you're looking for?

Ask Custom Question

What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems?

Purchase this Solution
Solution Summary

The solution explains what Pareto efficiency is and why economists use this criterion for comparing alternative economic systems.

Solution Preview

(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 ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Economics: What is Pareto efficiency?

    54997 Managerial Economics: What is Pareto efficiency? What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems? See attached file for further details.

  • Important information about Pareto efficiency

    Use the analytical characterization of Pareto efficiency to show that for every Pareto efficient allocations (X_a,Y_a,X_b,Y_b) we must have x_a>=y_a and x_b>=y_b Attached The solution examines the Pareto efficiency.

  • Pareto Efficiency and Comparing Alternative Economic Systems

    The solution discusses what is Pareto efficiency.

  • Public Policy Structure

    Since competitive equilibrium maximizes social efficiency, and the competitive equilibrium maximizes social efficiency is Pareto efficient, we conclude that Pareto efficient allocation of goods also maximizes social surplus. References: 1.

  • Financial or Public Economic Questions

    Efficiency requires MBR + MBM =MC. From the table, we find that when the temperature is 67, MBR =7, MBM =10 and MC=17. Since the condition MBR + MBM =MC is satisfied, 67 degree is the efficient temperature. Pareto efficiency is evaluated.

  • Flow Charts for Quality and Efficiency Problems

    Pareto charts and effect diagrams are also very useful in keeping the quality of the products on track. E. How could flow charts, Pareto charts or cause and effect diagrams be used to determine quality problems?

  • Breaking up of Microsoft

    Some argue that the antitrust law are justified on grounds of the efficiency of competition. that is, breaking up a monopoly should result in a Pareto-efficient change.

  • Benefits of Social Programs

    Does the project meet Pareto efficiency criterion (explain)? Revise the cost shares to meet Pareto criterion and get the referendum passed by a majority vote. See excel attached.

  • incentive scheme

    Thanks General equilibrium and economic efficiency are illustrated.

View More Related Solutions