What is the difference between Pareto optimality and parento efficient?

Pareto optimality is a state of economic efficiency in which it is impossible to make any one individual better off without making at least one individual worse off. Pareto efficiency is a state of economic efficiency in which it is impossible to make any one individual better off without making at least one individual worse off, and all gains from trade have been exhausted. In other words, Pareto optimality is a stronger condition than Pareto efficiency.

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Pareto optimality and Pareto efficiency are related economic concepts that highlight different aspects of resource allocation. Pareto optimality refers to a state in which no individual or participant can be made better off without making someone else worse off. In other words, it represents an allocation where no further improvements are possible without causing harm to others. On the other hand, Pareto efficiency denotes a resource allocation where it is not possible to make any participant better off without making someone else worse off. This concept emphasizes the overall efficiency of resource distribution, ensuring that resources are allocated in a manner that maximizes societal welfare. Overall, both terms focus on describing optimal or efficient allocations, but Pareto efficiency allows for potential improvements within the set of participants, while Pareto optimality deals with the absence of such improvements without causing detriment.