In pure exchange economy, a strongly Pareto efficiency is a weak allocation of Pareto efficient. There usually is no existing possible allocations. The realization would cause each person to gain. N economics, in case allocation of a system is not Pareto efficient, it is said that there is a potential Pareto improvement, thus increase in Pareto efficiency.
c) What is the condition of Pareto efficiency in a production economy? Explain the? Answer: Economic intuition of it.
e) Is it possible to have a Pareto efficient allocation where someone is worse off than? He is at an allocation that is not Pareto efficient?
Answer: It is possible to have a Pareto efficient allocation where someone is worse off. This is because a weak Pareto is a string efficiency allocation Pareto.
f) Is it possible to have a Pareto efficient allocation where everyone is worse off? No Than they are at an allocation that is not Pareto efficient? No
D) Can some individual be made better off if we are at a Pareto efficient allocation?
Answer: An individual can be made better off at Pareto efficient allocation because if parent efficiency does not exist, a potential increase exists.
2) What is a contract curve? Show it with the help of a diagram. If you know the contract curve, can you tell the outcome of any trading?