Answer to Question #258621 in Microeconomics for Wedt

Question

What is a Pareto superior allocation? When is an allocation said to be Pareto improving? At what point is Pareto Efficiency reached.

Answer 1

Pareto superior allocation is an allocation under which everyone is at least well off as compared to an available alternative

An allocation is said to be Pareto improving  when the changes in allocation harm no one and help at least one person

 Pareto efficiency is reached at a point when an economy has its resources and goods allocated to the maximum level of efficiency, and no change can be made without making someone worse off.