Briefly explain why the elimination of a production quota (like the NYC taxi medallions) would attain Pareto efficiency but would not represent a Pareto improvement.

a. If those who are made better off compensated those who are made worse off, could the elimination of a production quota benefit all market participants? Explain.

b. Explain what could be the complexities of such a compensation in practice. What do you think (I don't know how to answer) would facilitate this compensation? Explain.