Criteria of ideal economic efficiency requires that (I) all actions generating more social benefit than cost be undertaken and (II) no actions generating more social cost than social benefit be undertaken.

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This is because perfect economic efficiency requires maximizing social benefit, and minimizing social cost. Therefore, any action that generates more benefit than cost needs to be undertaken in order to maximize social benefit, while any action that generates more cost than benefit needs to be avoided in order to minimize social cost. Both of these criteria need to be met in order to achieve perfect economic efficiency.

Criteria of Ideal Economic Efficiency Requires That (I) All Actions