Pareto e?ciency holds in a(n) _____.

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Pareto efficiency is a state where no individual can be made better off without making someone else worse off. This condition is most closely met in perfectly competitive markets, where numerous firms produce homogeneous products, and no single buyer or seller can influence the market price, leading to an efficient allocation of resources. Monopolies, oligopolies, and monopolistically competitive markets, on the other hand, often involve some level of market power, price setting, and inefficiencies.

Pareto E?ciency Holds in A(n) _____