A Pareto optimum is a point that

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A Pareto optimum is a point where no individual can be made better off without making another individual worse off. This is the point that a social planner would choose to maximize societal welfare. A malevolent dictator would not necessarily choose a Pareto optimum as they do not have the best interests of all individuals in mind, and neither would a cooperative coalition of selfish consumers or firms. A Pareto optimum can be experienced at a competitive equilibrium, but this is not necessarily the only condition for it.

A Pareto Optimum Is a Point That