Every allocation on the contract curve is Pareto optimal.

Name: Every allocation on the contract curve is Pareto optimal.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Pareto optimality occurs when no individual can be made better off without making someone else worse off. Every allocation on the contract curve meets this criteria, since it represents a point where both parties prefer the same allocation over any other possible allocation.

Every Allocation on the Contract Curve Is Pareto Optimal