A Pareto preferred transaction is one where

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In a Pareto preferred transaction, no one loses and at least one person gains in the transaction. Therefore, option C is the correct choice. Option A is incorrect because a Pareto preferred transaction doesn't measure the magnitude of gain or loss, only the direction. Option B is incorrect as it implies that all parties must gain welfare, which is not necessary but certainly a desirable outcome. Option D is incorrect as it refers to the contract curve, which is a concept specific to Edgeworth box diagrams in microeconomics and is not relevant to the definition of a Pareto preferred transaction.

A Pareto Preferred Transaction Is One Where