Asked by
Emmerson Mcnally-Griffin
on Oct 25, 2024
Verified
An efficient allocation of goods in an exchange economy means that:
A) goods were produced by the most efficient technology available.
B) no one can be made better off without making somebody else worse off.
C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain.
D) in a particular production process one gets the maximum output for a given input.
Efficient Allocation
The optimal distribution of resources among competing needs or uses in a way that maximizes the net benefit achieved from those resources.
Exchange Economy
Market in which two or more consumers trade two goods among themselves.
Production Process
The series of steps or actions taken to transform inputs (like labor and materials) into final products or services.
- Familiarize oneself with the theories and repercussions of Pareto optimality across different distribution settings.
Verified Answer
MI
Learning Objectives
- Familiarize oneself with the theories and repercussions of Pareto optimality across different distribution settings.