Suppose there is a market with 100 participants. The only good in the economy is money and the total amount in this economy is $10 million.

Consider the following three allocations:

I. Every person in the market has $50,000

II. There are 4 people who each have $2 million. The other 96 people have an equal share of the rest.

III. One person has $9 million. Another person has $1 million. Everyone else has $0.

Which allocations are Pareto optimal?

Group of answer choices

- All three allocations are Pareto optimal.

- Only I. is Pareto optimal.

- Only III. is Pareto optimal

- None of the allocations are Pareto optimal.

- Only II. and III. are Pareto optimal.