Saturday, 31 August 2013

To discuss the theory of a firm in social choice framework, what is required is the axiom of completeness.  A set of alternative choices where A is  being preferred to B or B to A as the operator or as the generator there is indifference between A and B, there is completeness. The preferences are transitive. If A is preferred to B and B is preferred to C then A is preferred to C. Indifference's are quasi-transitive. If there is indifference between two or more alternatives any alternative can be chosen and this specific choice is indeterminate. Probability can be assigned. Risks are calculated with reasonable expectation considering all the three markets. Sufficiency is then a condition.

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