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It ignores distributional issues, so that, for example, according to Pareto optimality, two economies which are being compared with one-another are equally "optimal" or "efficient," if both are equal in per-capita wealth, and if one economy has an equal distribution of wealth, whereas the other has one person, say the king or dictator, who has almost all the wealth, and everyone else, say his slaves, has little or none.
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What is the significance of the Weierstrass theorem in mathematical analysis?
The Weierstrass theorem is significant in mathematical analysis because it guarantees the existence of continuous functions that approximate any given function on a closed interval. This theorem is fundamental in understanding the behavior of functions and their approximation in calculus and analysis.
What are some common problems associated with the Coase Theorem?
Some common problems associated with the Coase Theorem include high transaction costs, imperfect information, unequal bargaining power, and difficulties in defining property rights.
What is the tendency of suppliers to offer more of a good at a higher price?
The law of supply. This theorem reflects the usual assumption that cost functions satisfy Innada conditions.
What is MM theory in Finance?
Miller and Modigliani derived the theorem and wrote their groundbreaking article when they were both professors at the Graduate School of Industrial Administration (GSIA) of Carnegie Mellon University. It is said that Miller and Modigliani were set to teach corporate finance for business students despite the fact that they had no prior experience in corporate finance. When they read the material that existed they found it inconsistent so they sat down together to try to figure it out. The result of this was the article in the American Economic Review and what has later been known as the M&M theorem. The theorem was originally proven under the assumption of no taxes. It is made up of two propositions which can also be extended to a situation with taxes. Consider two firms which are identical except for their financial structures. The first (Firm A) is unlevered: that is, it is financed by equity only. The other (Firm B) is levered: it is financed partly by equity, and partly by debt. The Modigliani-Miller theorem states that the value of the two firms is the same.
What is the intuition behind the envelope theorem?
The envelope theorem states that the derivative of the value function with respect to a parameter is equal to the partial derivative of the value function with respect to that parameter, evaluated at the optimal values of the control variables. In simpler terms, it tells us that the change in the value function due to a small change in a parameter is equal to the change in the value function that would occur if the control variables were adjusted to keep the parameter constant.
How does the auction method satisfy the concepts of Pareto optimality?
The auction method, depending on the type of method used, satisfies Pareto optimality for the following reason: it is always best in an auction to bid your own valuation for a good. In game theory terms, this means that bidding your monetary valution of the good is always a weakly-dominanted strategy. This implies that the winner of the bid will, ignoring monetary constraints, will always be the person with the highest valuation of the good (since they bid the highest). Pareto optimality occurs when no one can be made better off without making someone worse off. When the item belongs to the person/group who values it most, social welfare is optimised (this is also called the Hobbes Theorem). Thus, the auction method, with basic rules, satisfies Pareto optimality by assigning the good to the person who values it most.
What is norton's theorem?
Norton's theorem is the current equivalent of Thevenin's theorem.
How do you solve a remainder theorem?
You cannot solve a theorem: you can prove the theorem or you can solve a question based on the remainder theorem.
What type of statement must be PROVEN in geometry?
That is a theorem.A theorem.
What are the aspects of Pythagoras theorem?
There are 19 various aspects of Pythagoras theorem. Pythagorean Theorem (1) Pythagoras Theorem(2) Pythagorean Theorem (3) Pythagorean Theorem (4) Pythagoras Theorem(5) Pythagorean Theorem(6) Pythagrean Theorem(7) Pythagoras Theorem(8) Pythagorean Theorem (9) Hyppocrates' lunar Minimum Distance Shortest Distance Quadrangular Pyramid (1) Quadrangular Pyramid (2) Origami Two Poles Pythagoras Tree(1) Pythagoras Tree(2) Theorem by Pappus
What is the definition of theorem in geometry?
theorem
Can a theorem be proven using a corollary?
No, a corollary follows from a theorem that has been proven. Of course, a theorem can be proven using a corollary to a previous theorem.
What is pappas theorem?
Google "Pappas Theorem"
What is quantum theorem?
A quantum theorem does not exist.
Which is the hypotenuse-angle theorem?
It is Pythagoras' theorem
What is basic proponality theorem?
thyales theorem
What is picks theorem?
Pick's Theorem is a theorem that is used to find the area of polygons that have vertices that are points on a lattice. George Pick created Pick's Theorem.
