When a market is efficient:
A) any additional changes to make someone better off will make someone else worse off.
B) a central planner must be involved.
C) total surplus is zero.
D) any additional changes to make someone better off will reduce the deadweight loss.

Question

Quizplus · Accepted Answer

In an efficient market, resources are allocated in the most efficient manner, meaning any additional changes to benefit one party will necessarily harm another, reflecting the concept of Pareto efficiency.

When a Market Is Efficient