Which of the following is a Pareto improvement? A) A monopolist loses

Which of the following is a Pareto improvement?

A) A monopolist loses its monopoly when a government policy allows another firm to enter the market, resulting in lower prices and higher quantity available for consumers.
B) A government policy is implemented that results in the middle class being better off, and the very rich only have to pay a little bit more in taxes.
C) A government policy removes a market failure.
D) None of the above.

ANSWER

D