Economics Supply And Demand Questions
Pareto efficiency is a concept in economics that refers to a situation where resources are allocated in the most efficient way possible, such that it is impossible to make any individual better off without making someone else worse off. In other words, Pareto efficiency occurs when it is not possible to reallocate resources to make one person better off without making someone else worse off. This concept is often used to analyze the efficiency of market outcomes and to evaluate the impact of policy interventions.