MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Chapter 23, Problem 1QE
To determine

Explain the Pareto optimal policy.

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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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