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Emmerson Mcnally-Griffin
on Oct 14, 2024

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If a social welfare function is an increasing function of each person's utility, then every allocation that maximizes this social welfare function must be a Pareto optimum.

Social Welfare Function

A theoretical framework in economics that represents preferences over social states or outcomes, aiming to aggregate individual utilities into a measure of collective welfare.

Pareto Optimum

A distribution of resources in which it is not feasible to rearrange in a way that improves one person's situation without detrimentally affecting at least another individual's standing.

  • Grasp the principles of Pareto optimality and its significance in economic allocations.
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that one guy you knowOct 19, 2024
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