When comparing the allocation of two goods relative to two consumers with individual utility functions, multiple points of Pareto efficiency can exist.

Question

Quizplus · Accepted Answer

Multiple points of Pareto efficiency can exist when comparing the allocation of two goods relative to two consumers with individual utility functions because there can be different combinations of allocation that are mutually beneficial to both consumers, without making any of them worse off.

When Comparing the Allocation of Two Goods Relative to Two