In His 1951 Book Social Choice and Individual Values, Arrow

question 8

Multiple Choice

In his 1951 book Social Choice and Individual Values, Arrow argues that a perfect voting system satisfies all of the following properties except

• A)unanimity.
• B)transitivity.
• C)reflexivity.
• D)independence of irrelevant alternatives.

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Definitions:

Unit Contribution Margin

The amount each unit sold contributes to fixed costs and profit after variable costs are subtracted.

Operating Income

The revenue accrued from a firm's foundational business activities, prior to the removal of interest and tax charges.

Fixed Costs

Expenses that do not vary with production volume, such as rent, salaries, and insurance premiums.

Zero Profit

A situation where a business's revenues exactly match its expenses, resulting in no net profit.