o Optimality describes accurately the concept of economic efficiency, thus, infers that economically efficient resource allocations are always Pareto optimal allocations. In a situation where an initial allocation was inefficient, the achievement of economic efficiency does not require that no one be made worse off before a change is recommended. All that is required is that the change in resource use make it theoretically possibleùmaking all sorts of assumptions of actions unattainable in the real worldùto make someone better off while making no one worse off than they had been. It actual practice, such a change in resource allocation might well make someone worse off than they had been. All that is required under this scenario, however, is that those individuals gaining from a change in resource benefit by a large enough amount to compensate losers from the change. Importantly, however, it is not required that gainers actually compensate losers. All that is required is that they ga
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