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Initial Allocation
The initial distribution of resources, goods, or assets among various parties or agents in an economic model or real-world scenario.
Pareto Optimal Allocations
A situation where it is impossible to make any one individual better off without making at least one individual worse off, indicating an efficient allocation of resources.
Edgeworth Box
A diagram used in microeconomics to show how different allocations of goods can lead to efficiency or inefficiency within a market.
Utility Function
A formula that quantifies the happiness or satisfaction received from consuming certain amounts and combinations of goods and services.
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