Perfect Competition, Pareto Optimality and Welfare Optimum | Economics
In this article we will discuss about whether perfect competition is necessary or not for Pareto optimality and welfare optimum. Perfect Competition is not Necessary for Pareto Optimality: Perfect competition is not necessary for Pareto optimality. Even if perfect competition does not exist, the economy may move from Pareto non-optimality to: (i) A Pareto-optimal state on the Edge-worth contract curve [...]