Discussion
In Pareto optimal or efficiency equilibrium :
Answer: A
Pareto optimality is a situation in which it is impossible to make anyone better off without making someone worse off.
This is Vilfredo Pareto's criterion: an allocation is optimal if no reallocation can raise one person's welfare without lowering another's. Every possible gain for one person has already been exhausted.
A situation where someone can be made better off without harm is exactly the opposite, a Pareto improvement still available. Supply equal to demand describes market equilibrium, which need not be Pareto optimal. Equality of MRS and MRTS mixes conditions for consumers and producers and is not by itself the definition.
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