Two goods are said to be allocated efficiently between consumers when _____.
A)both goods give the consumers the same total utility
B)there are no trades that will make one of the consumers strictly worse off
C)one consumer is as well off as possible,given the utility of the other consumer
D)both the consumers are maximizing utility

Question

Quizplus · Accepted Answer

Efficient allocation between consumers occurs when one consumer cannot be made better off without making the other worse off, which is the condition of Pareto efficiency.

Two Goods Are Said to Be Allocated Efficiently Between Consumers