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If a policy helps some but harms others, - the result is a Pareto improvement for the people who are helped. - then the cost-benefit
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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