A Pareto optimum is a point that

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A Pareto optimum is a point where no individual can be made better off without making someone else worse off. A social planner would choose this point because it represents the best outcome for society as a whole. It is not appropriate to associate a Pareto optimum with a malevolent dictator or an altruistic consumer coalition, as these concepts do not reflect a focus on overall societal welfare. While socially responsible firms may be concerned with achieving a Pareto optimum, it is not clear that they would be able to coordinate their actions to achieve this outcome. Pareto optimality is also distinct from competitive equilibrium, which represents a situation where no individual can improve their well-being by changing their actions given the actions of others.

A Pareto Optimum Is a Point That