If a market is pareto efficient, it means:Choice 1 of 2:there are trades left that can help someone without hurting anyone else.Choice 2 of 2:there are no trades left that can help someone without hurting anyone else.
Question
If a market is pareto efficient, it means:Choice 1 of 2:there are trades left that can help someone without hurting anyone else.Choice 2 of 2:there are no trades left that can help someone without hurting anyone else.
Solution
Choice 2 of 2: there are no trades left that can help someone without hurting anyone else.
In a Pareto efficient market, resources are allocated in the most efficient manner, and no further trades or re-allocations can make someone better off without making someone else worse off.
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