Economies can reach state in which one consumer cannot become better off without making another worse off {static efficiency} {Pareto optimum, economics}, with same resources and technology.
conditions
Static efficiency results under the following conditions {pure market economy}. Plants operate at capacity and are at optimum scale. For all goods, marginal utility divided by price are equal. Price equals marginal cost. For all resources, marginal product divided by price are equal. For all factors, marginal revenue products are equal for all uses. Leisure marginal value equals labor marginal value. Marginal saving value equals marginal consumption value. Good marginal-utility ratios are equal for all consumers. Workers do what they like best and can do best. Workers can move freely among jobs.
Social Sciences>Economics>Macroeconomics>Measurement
6-Economics-Macroeconomics-Measurement
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Date Modified: 2022.0224