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jcortese151 jcortese151
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3 years ago
If a policy helps some but harms others,

▸ the result is a Pareto improvement for the people who are helped.

▸ then the cost-benefit analysis will show a net increase in surplus and is therefore desirable.

▸ we cannot use the Pareto principle to evaluate whether or not the policy is desirable.

▸ it is too hard to determine whether or not the outcome is desirable.
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Managerial Economics and Strategy

Managerial Economics and Strategy


Edition: 3rd
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hlocascio17hlocascio17
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