Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation
A) is definitely efficient.
B) is definitely not in the self-interest of Company A.
C) is definitely not in the social interest.
D) is definitely fair.

Question

Quizplus · Accepted Answer

This situation is considered efficient because the company's profits increased without making anyone worse off, aligning with the economic definition of efficiency. Efficiency does not consider how benefits are distributed among individuals.

Suppose Company A's Profits Increase by $10 Million and Nobody