An Allocation of Resources Is Pareto Optimal If

question 15

Multiple Choice

An allocation of resources is Pareto optimal if

• A)It is possible to make one person better off without making at least some others worse off
• B)No further mutually beneficial exchange is possible
• C)It is below the contract curve
• D)It is possible to make everyone else better off

---

Definitions:

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a project, decision, or endeavor.

Maximum Profit

The highest achievable profit under given market conditions, considering all costs and revenue.

Shareholders

Individuals or entities that own shares in a corporation, thereby holding a portion of the ownership.

Resist Unethically

The act of opposing or defying through morally questionable means or for unethical purposes.