can distribution of a commodity into two individuals in the ratio 80:20 be called Pareo Optimal or not?

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can distribution of a commodity into two individuals in the ratio 80:20 be called Pareo Optimal or not?

2006-12-07 09:32:37 · 2 answers · asked by bharat g 1 in Social Science ➔ Economics

2 answers

yes if that equals their preferences for it.

But "pareto optimal" usually refers to a change rather than a state. It means that the change makes one or more people better off without making anyone else worse off.

2006-12-09 05:30:13 · answer #1 · answered by MBK 7 · 0⤊ 0⤋

yes it can because equity doesn't matter for optimality.

2006-12-08 04:08:08 · answer #2 · answered by Dirk N 3 · 0⤊ 0⤋