The term Pareto efficient means that there is no alternative, feasible allocation of goods and inputs:
A)that would make all consumers better off without hurting some consumers.
B)that would make any consumers better off without helping some consumers more than others.
C)that would make any consumers better off without hurting some consumers.
D)that would make any consumers worse off without helping some consumers.

Question

Quizplus · Accepted Answer

Pareto efficiency means that there is no feasible allocation of goods and inputs that would make any consumers better off without hurting some consumers. In other words, there is no allocation that can improve the welfare of some individuals without decreasing the welfare of others. Option C is the closest to this definition.

The Term Pareto Efficient Means That There Is No Alternative