Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
Question
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Chapter 23, Problem 1QE
To determine

Explain the Pareto optimal policy.

Expert Solution & Answer
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Explanation of Solution

The Pareto optimal policy is the policy that benefits some people and does not hurt anyone. In real life, it is not that much possible like a Pareto optimal policy. Even though, if one could see other social values as being inviolate. For the most part, these problems are theoretical, since no such legislation may actually exist. All the real-world polices make some people better off and some people worse off.

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