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Pareto Efficiency and Optimality
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What is Pareto efficiency?
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A
A state of resource allocation where it is impossible to make one person better off without making someone else worse off.
💡 Explanation:
Pareto efficiency is a state of resource allocation where it is impossible to make one person better off without making someone else worse off. This means that there is no way to improve the welfare of one person without harming the welfare of another person.