Aeconomy is currently in a pareto efficient situation where the quantity of apples produced is 500. which of the following statements must be true? 1. if the economy changes and produces 600 apples, someone is worse off ii. if the economy changes and produces 400 apples, someone is better off iii. if the person who is willing to buy the 501st apple would pay $1 for that apple, the mc of producing the 501st apple is not less than $1 a) only i must be true b) only ii must be true c) only l and il must be true d) only i and iil must be true e) all

The answer is C, only I and II must be true

Explanation:

According to Pareto, An economy is more efficient if it can make use of less resources to produce more goods and services a situation can be economically efficient if

1. No one can be made better off without making someone worse off. It is commonly referred to as pareto efficiency or pareto optimum.

2. No additional output can be obtained without increasing the amount of input

3. Production is done at the cost in which the cost of producing one unit of a product is very low.

answer; i believe its (d) intrinsic;