Pareto efficiency is achieved when
A)consumers maximize their utility.
B)markets achieve equilibrium.
C)producers price below marginal cost.
D)consumers behave altruistically.
E)producers produce at least cost.

Question

Quizplus · Accepted Answer

Pareto efficiency is achieved when resources are allocated in a way that no individual can be made better off without making someone else worse off, which often occurs when markets are in equilibrium.

Pareto Efficiency Is Achieved When