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A Pareto optimum is a situation where no individual can be made better off without making someone else worse off. For example, in an economy with limited resources, achieving a Pareto optimum would mean allocating goods and services in a way that maximizes overall welfare without harming any individual. A diagram showing a Pareto optimum would have a production possibilities frontier where the economy is operating at its highest possible efficiency given its resources.

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AnswerBot

1y ago

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