Pareto efficiency is defined as a state where
A)poverty does not exist.
B)no one can possibly be made worse off.
C)everyone can benefit from a change.
D)no one can benefit from a change without someone being harmed.
E)the lowest cost of production is achieved.

Question

Quizplus · Accepted Answer

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. This concept does not necessarily imply an equitable distribution of resources, but it indicates that no further changes can improve someone's situation without harming another's, aligning with choice D.

Pareto Efficiency Is Defined as a State Where