Question: Select the correct statements. When outcome A is achieved, the sum of the utility of all participants is higher than when outcome B is achieved.
Select the correct statements. When outcome A is achieved, the sum of the utility of all participants is higher than when outcome B is achieved. It follows that outcome A is Pareto-superior to outcome B. Outcome A is Pareto-superior to outcome B. This means that A is overall better than B for society, although some people individually may prefer B. If outcome A is Pareto-superior to outcome B, this implies that no participant prefers B to A, while at least one participant prefers A to B. An outcome may well be Pareto efficient but at the same time very inequitable, and thus undesirable. An outcome that makes some participants very rich and others extremely poor can never be Pareto-efficient. If outcome A is Pareto efficient, then every participant prefers A to any other possible outcome
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