The production and distribution of goods and services in an economy is said to be Pareto-efficient if
A)there exists no alternative that keeps all individuals at least as well off but makes even one person better off.
B)there is no alternative that reduces the cost of transportation and distribution of goods in a market.
C)the revenue generated from the sale of goods and services is more than the cost of production.
D)the quantity of goods demanded in an economy is more than the quantity supplied.

Question

Quizplus · Accepted Answer

Pareto-efficiency, also known as Pareto-optimality, is achieved when no one can be made better off without making someone else worse off. This means that there is no alternative allocation of goods or services that would leave any individual or group better off without making someone else worse off.

The Production and Distribution of Goods and Services in an Economy