Multiple Choices

1. Pareto efficient allocation requires?

1. All individuals have the same marginal benefit of consuming goods.
2. For inner allocations of inputs, all firms have the same marginal productivity of a given input.
3. For inner allocations of consumption goods, all firms have the same cost of producing goods.
4. The only way to make one person better off is to make some other persons worse off.
5. The sum of individuals utility is maximized