the consumer is fully informed about the economy, unaffected by the actions of other consumers or producers, completely mobile in occupation and location and always trying to maximize their utility.

allocation efficacy (where the limited resources of the country is allocated in accordance with the consumers)

production activities must be Pareto optimal *(it should not be possible to increase the output of one good with out reducing it of another)8

producers and consumers must achieve equilibrium simultaneously, given the slope of the PPC or the MRPT

economic efficiency in consumption must occur in such a way that no interpersonal relocation of commodities can increase utility of the consumers.

the consumer will maximize utility subject to their own budget or chose the commodity mix that the marginal rate of substitution (the slope of the interference curve) equals the corresponding commodity price ratio, Px/Py. fig 2.6

their income depends on how much of the resources they own
please read Figure 2.4

Pareto optimality in consumption implies a situation in which it is impossible to increase the utility of either of the two consumers with out reducing the utility of one of them.

MRPT (xy) = MCx/mcy = Px/Py =MRS^a (xy) =MRS^b (xy)

• this indicates equality between the rate at which each consumer is willing to substitute one commodity of another and the rate at which it is technically possible to do so. simultaneous compliance will insure the optimal production of optimal output mix

X-efficiency a situation where existing resources are utilized in the most efficient manner.

• all economic inefficiency other than allocative inefficiency fall under the term x - inefficiency
  

X efficiency ensure that society is on its PPC, but can't determine where on the curve

dynamic efficiency: with economic growth the PPC can shift.