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The mainstream view is that market economies are generally believed to be closer to efficient than other known alternatives [4] and that government involvement is necessary at the macroeconomic level (via fiscal policy and monetary policy) to counteract the economic cycle – following Keynesian economics. At the microeconomic level there is ...
Allocation efficiency occurs when there is an optimal distribution of goods and services, considering consumer's preference. When the price equals marginal cost of production, the allocation efficiency is at the output level. This is because the optimal distribution is achieved when the marginal utility of good equals the marginal cost.
The graph shows the maximum amount of one person's utility given each level of utility attained by all others in society. [1] The utility–possibility frontier (UPF) is the upper frontier of the utility possibilities set, which is the set of utility levels of agents possible for a given amount of output, and thus the utility levels possible in ...
In general, there may be a different matroid for each agent, and the allocation must give each agent i a subset X i that is an independent set of their own matroid. Welfare maximization with additive utilities under heterogeneous matroid constraints can be done in polynomial time, by reduction to the weighted matroid intersection problem.
In management literature, gap analysis involves the comparison of actual performance with potential or desired performance. [1] If an organization does not make the best use of current resources, or forgoes investment in productive physical capital or technology, it may produce or perform below an idealized potential.
Today's term: asset allocation. In the most basic sense, asset allocation is simply how one's assets are divided among different asset classes, such as cash, stocks, bonds, real estate, and so on ...
The goal is to decide on an allocation x of the budget, such that x 1 +...+x k = B. There are n agents; each agent i has a utility function U i over possible allocations of the budget. An allocation x is a Lindahl equilibrium if there exist personal price-vectors p 1,...,p n such that the following two conditions hold:
In economics, the field of public finance deals with three broad areas: macroeconomic stabilization, the distribution of income and wealth, and the allocation of resources. . Much of the study of the allocation of resources is devoted to finding the conditions under which particular mechanisms of resource allocation lead to Pareto efficient outcomes, in which no party's situation can be ...