A Function of One Argument Is Minimized When the First

question 9

Multiple Choice

A function of one argument is minimized when the first derivative is:

• A) zero and the second derivative is positive.
• B) positive and the second derivative is negative.
• C) zero and the second derivative is negative.
• D) negative and the second derivative is positive.
• E) zero and the second derivative is zero.

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Definitions:

First Theorem

Likely refers to the First Fundamental Theorem of Welfare Economics, which states that competitive markets lead to an efficient allocation of resources under certain conditions.

Welfare Economics

Welfare Economics is a branch of economics that focuses on the optimal allocation of resources and goods to maximize the social welfare or well-being of the community.

Efficient Allocation

An optimal distribution of resources in an economy, where goods and services are distributed according to consumer preferences with minimal waste.

Marginal Rate

A measure or rate of change of a variable (such as cost or benefit) as a result of a unit change in another variable.