Asked by
Price Watson
on Nov 05, 2024Verified
If after a change in an allocation it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be potentially efficient.
Potentially Efficient
A situation or condition that has the capability to achieve optimum productivity with minimal waste and expense.
Losses
Financial condition when a company's total costs exceed its total revenue, leading to a negative profit.
- Comprehend the principle of Pareto efficiency and its utilization in the assessment of government policies and market transactions.
Verified Answer
CT
Learning Objectives
- Comprehend the principle of Pareto efficiency and its utilization in the assessment of government policies and market transactions.
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