Pareto efficiency is achieved when the sum of producer surplus and consumer surplus is maximized.

Name: Pareto efficiency is achieved when the sum of producer surplus and consumer surplus is maximized.
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Pareto efficiency occurs when allocation of goods and services cannot be changed so that someone is made better off without making someone else worse off. This optimal allocation of resources leads to the maximization of both producer and consumer surplus.

Pareto Efficiency Is Achieved When the Sum of Producer Surplus