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Hypothetical pareto improvement criterion

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Reference no: EM131560933

The Benefit-Costs Analysis (BCA) is based on the so-called hypothetical Pareto Improvement criterion. Pareto Improvement is the movement from state A to state B which makes at least one person of a society better off without making anyone else worse off. This also implies that

Question options:

market equilibrium cannot be reached.

there is an inefficiency in economy.

winners of a project cannot compensate losers of this project.

social costs and benefits are maximized

a project should be accepted only if all persons in a society are better off as a result of its implementation.

Reference no: EM131560933

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