A Pareto optimum is a point that

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A Pareto optimum is a point that a social planner would choose because it represents a situation where no one can be made better off without making someone else worse off. A social planner's goal is to maximize social welfare, which means achieving a situation where everyone's well-being is maximized. Pareto efficiency is a useful concept for social planners because it helps them identify policy options that will produce the best outcomes for all members of society.

A Pareto Optimum Is a Point That