What is Pareto Optimality, and why is it important to managers?

Pareto Optimality is the argument that the best (optimal) policy for the leader of a society (or group, or business, ...etc.) is to implement those options that make everyone in the business (group, society) better off, up to the point where no further improvement can be made without making one person better off by making another person worse off.This concept is important to managers because this approach is the key to maximizing the value of the firm when there exist multiple groups of stakeholders (Owners, Managers, Employees, Suppliers, Customers, etc).

A) True

B) False