In a pure exchange economy if the initial allocation is Pareto optimal, then competitive equilibrium is fair.

Name: In a pure exchange economy if the initial allocation is Pareto optimal, then competitive equilibrium is fair.
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Quizplus · Accepted Answer

A Pareto optimal allocation ensures that no one can be made better off without making someone else worse off, but it does not guarantee fairness or equity in the distribution of resources, which is a separate consideration from efficiency.

In a Pure Exchange Economy If the Initial Allocation Is