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.
This is because Pareto efficiency, or Pareto optimality, is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. Therefore, if a market is Pareto efficient, there are no more opportunities to make someone better off without hurting someone else.
Similar Questions
If a sale or trade is pareto efficient (or pareto improving) it means the sale:Choice 1 of 2:has helped at least one party without hurting anyoneChoice 2 of 2:helped one party and hurt another party
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