If after a change in an allocation it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be potentially efficient.

Question

Quizplus · Accepted Answer

This statement aligns with the concept of Pareto efficiency in economics, where a change that can make at least one individual better off without making anyone else worse off is considered potentially efficient. If the gains exceed the losses, those who gain could theoretically compensate those who lose, achieving a Pareto improvement.

If After a Change in an Allocation It Can Be