A sector is considered “pareto efficient” if its value added per employee and its value added per rupee of fixed capital is higher than those of all other sectors. Based on the table data, the pareto efficient sector is
Explanation:
Value added per employee from the solution to the second question of the set, is highest for the Central and State/Local governments.
∴ That has to be the answer. No need to look for value added per rupee of fixed cost.
Hence, option (c).
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