If a Voting System Has Three or More Alternatives, Satisfies

question 87

Short Answer

If a voting system has three or more alternatives, satisfies the Pareto condition, always produces a unique winner, and is not a dictatorship, what conclusion follows from the GS theorem?

Recognize the role of opportunity costs in calculating economic profits.

Understand fixed-cost fallacy and its implications.

Evaluate decisions based on opportunity costs, ignoring sunk costs.

Understand the impact of automated service technologies on cost structures.

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Definitions:

Second-Price Auction

In a second-price auction, the highest bidder wins but pays the price bid by the second-highest bidder, encouraging participants to bid their true value.

Expected Revenue

The anticipated amount of money a business expects to receive over a certain period, usually as a result of sales or services.

Foreclosed

A legal process in which a lender takes control of a property after the borrower fails to meet the repayment terms of the loan.

Second-Bidder

Refers to the auction bidder with the second-highest bid, often relevant in Vickrey auctions where this bidder's price determines the sale price.