Which of the following statements about efficiency is/are TRUE? I. If, given some initial allocation, we are unable to implement a change that makes at least one person better off and no-one worse off, then the current allocation is efficient. II. An allocation is inefficient if we are able to reallocate in such a way that makes one person better off without making anyone else worse off. III. If we reallocate such that at least one person is better off and no one is wor off, then the situation after the reallocation will be efficient.

Which of the following statements about efficiency is/are TRUE? I. If, given some initial allocation, we are unable to implement a change that makes at least one person better off and no-one worse off, then the current allocation is efficient. II. An allocation is inefficient if we are able to reallocate in such a way that makes one person better off without making anyone else worse off. III. If we reallocate such that at least one person is better off and no one is wor off, then the situation after the reallocation will be efficient.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.1P

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