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Answer to Question #122561 in Microeconomics for Sophal Jamil

Question #122561
Explain why a Walrasian equilibrium allocation is Pareto Efficient. How useful is this observation as a guide to policy?
1
Expert's answer
2020-06-17T11:16:52-0400

A walrasian equilibrium is pareto efficient since it is impossible to make one consumer better off without making the other worse off.


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