When is an outcome (allocation) Pareto efficient?
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If a policy change causes a Pareto improvement, is the outcome necessarily Pareto efficient?
If a situation is Pareto efficient, are Pareto improvements possible?
If a change occurs that causes a Pareto efficient outcome, is the change necessarily a Pareto improvement? Please explain.
1. What is meant by the Pareto Efficiency of an allocation of resources?
2. How unique is it for an allocation of resources to be Pareto efficient?
3.What consideration is overlooked by Pareto efficiency?
3. What does the First Theorem of Welfare Economics assert?
keegan and barbara live in a jungle in the south Luangwa National Park. the Consume only two goods mangoes (M) and finkubala (F). Currently Keegan consumes 10M's and 5f's, while Barbara consumes 3M's and 9F's. keegan's marginals rate of substitution for M to F is one and Barbara's Marginal rate of substitution is 0.5.
a) Define Pareto optimal Allocation.
b) Is the allocation provided above Pareto efficient? If so, explain why. If not, show a possible Pareto improvement.
c) If there was a competitive market for each type of posters, would these markets produce Pareto efficient allocation?
