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Pareto Efficiency

Pareto efficiency, also known as Pareto optimality, is a concept in economics that refers to a state where resources are allocated in such a way that no one can be made better off without making someone else worse off. In other words, Pareto efficiency occurs when an economy is producing goods and services at a point where it is not possible to make anyone better off without making someone else worse off.

However, it is important to note that Pareto efficiency does not necessarily lead to a fair or equitable distribution of resources, as it only focuses on the efficiency of the allocation of resources, without considering whether the distribution of resources is just or not.

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