All of the following are conditions of Pareto efficiency except
A)price equals marginal benefit.
B)marginal benefit is the same for all consumers.
C)marginal cost is the same for all producers.
D)income is the same for all consumers and producers.
E)marginal benefit equals marginal cost.

Question

Quizplus · Accepted Answer

Income being the same for all consumers and producers is not a condition of Pareto efficiency. Pareto efficiency only considers the allocation of resources and whether it is possible to make someone better off without making someone else worse off. It is not concerned with the distribution of income.

All of the Following Are Conditions of Pareto Efficiency Except