Pareto improvement custom essay

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Explain the distinction between an actual and a potential Pareto improvement, illustrating your answer with diagrams where appropriate. On the question of diagrams illustrating actual and potential Pareto improvements. There is no way you can show the latter unless you use a diagram with money values on the axes and state that you are assuming that both individuals have an equal marginal utility of income. I”m not expecting a diagram for the potential improvement. The question states that diagrams should be included when appropriate, so I”m only expecting the actual improvement diagram and then some text to explain the potential improvement.

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