What Do We Know About the Arrow Impossibility Theorem in the History

question 127

Multiple Choice

What do we know about the Arrow impossibility theorem in the history of political economy

• A)It was proved by Arrow mathematically and definitively.
• B)It has not been taken seriously since the 1970s.
• C)It was overturned by the median voter theorem in the 1990s.
• D)It runs counter to most people's intuition in that it establishes the "relevance of irrelevant alternatives."

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Definitions:

Marginal Revenue

The change in total revenue from an additional unit sold.

Marginal Cost

The cost of producing one additional unit of a good or service, important in decision-making processes about production levels.

Product of Labor

The goods or services generated as a result of work or employment, often measured to evaluate productivity.

Profit Maximization

The strategy a business uses to ascertain the pricing and amount of production that maximizes profitability.