There are two fundamental theorems of welfare economics. The first states that in economic equilibrium, a set of complete markets, with complete information, and in perfect competition, will be Pareto optimal (in the sense that no further exchange would make one person better off without making another worse off). The requirements for perfect competition are these: 1. * There are no externalities and each actor has perfect information. 2. * Firms and consumers take prices as given (no economic actor or group of actors has market power). The theorem is sometimes seen as an analytical confirmation of Adam Smith's "invisible hand" principle, namely that competitive markets ensure an efficient allocation of resources. However, there is no guarantee that the Pareto optimal market outcome is socially desirable, as there are many possible Pareto efficient allocations of resources differing in their desirability (e.g. one person may own everything and everyone else nothing). The second theorem states that any Pareto optimum can be supported as a competitive equilibrium for some initial set of endowments. The implication is that any desired Pareto optimal outcome can be supported; Pareto efficiency can be achieved with any redistribution of initial wealth. However, attempts to correct the distribution may introduce distortions, and so full optimality may not be attainable with redistribution. The theorems can be visualized graphically for a simple pure exchange economy by means of the Edgeworth box diagram. (Wikipedia).
What is the Fundamental theorem of Algebra, really? | Abstract Algebra Math Foundations 217
Here we give restatements of the Fundamental theorems of Algebra (I) and (II) that we critiqued in our last video, so that they are now at least meaningful and correct statements, at least to the best of our knowledge. The key is to abstain from any prior assumptions about our understandin
From playlist Math Foundations
Calculus - The Fundamental Theorem, Part 1
The Fundamental Theorem of Calculus. First video in a short series on the topic. The theorem is stated and two simple examples are worked.
From playlist Calculus - The Fundamental Theorem of Calculus
The Second Fundamental Theorem of Calculus
This video introduces and provides some examples of how to apply the Second Fundamental Theorem of Calculus. Site: http://mathispower4u.com
From playlist The Second Fundamental Theorem of Calculus
The Fundamental Theorem of Calculus | Algebraic Calculus One | Wild Egg
In this video we lay out the Fundamental Theorem of Calculus --from the point of view of the Algebraic Calculus. This key result, presented here for the very first time (!), shows how to generalize the Fundamental Formula of the Calculus which we presented a few videos ago, incorporating t
From playlist Algebraic Calculus One
The Fundamental Theorem of Calculus and How to Use it
Please Subscribe here, thank you!!! https://goo.gl/JQ8Nys The Fundamental Theorem of Calculus and How to Use it
From playlist Calculus 1
Ex 1: The Second Fundamental Theorem of Calculus
This video provides an example of how to apply the second fundamental theorem of calculus to determine the derivative of an integral. Site:http://mathispower4u.com
From playlist The Second Fundamental Theorem of Calculus
Calculus: The Fundamental Theorem of Calculus
This is the second of two videos discussing Section 5.3 from Briggs/Cochran Calculus. In this section, I discuss both parts of the Fundamental Theorem of Calculus. I briefly discuss why the theorem is true, and work through several examples applying the theorem.
From playlist Calculus
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Financial Theory (ECON 251) Over time, economists' justifications for why free markets are a good thing have changed. In the first few classes, we saw how under some conditions, the competitive allocation maximizes the sum of agents' utilities. When it was found that this property didn'
From playlist Financial Theory with John Geanakoplos
MIT 14.01 Principles of Microeconomics, Fall 2018 Instructor: Prof. Jonathan Gruber View the complete course: https://ocw.mit.edu/14-01F18 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP62oJSoqb4Rf-vZMGUBe59G- This lecture covers the fundamentals of welfare economics,
From playlist MIT 14.01 Principles of Microeconomics, Fall 2018
MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP63wnrKge9vllow3Y2OOOKqF Prof
From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020
MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2
From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020
Proof of the Fundamental Theorem of Calculus (Part 1)
This video proves the Fundamental Theorem of Calculus (Part 1). http://mathispower4u.com
From playlist The Second Fundamental Theorem of Calculus
MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2
From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020
Change of variables and the derivative -- Calculus I
This lecture is on Calculus I. It follows Part I of the book Calculus Illustrated by Peter Saveliev. The text of the book can be found at http://calculus123.com.
From playlist Calculus I
Lecture 16: Fundamental Welfare Theorems
MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2
From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020
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From playlist Social & Political Philosophy
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MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2
From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020
Lecture 5: The Resurgent Right in the West
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From playlist Power and Politics in Today’s World
Fundamental Principle of Counting Example 2
Please Subscribe here, thank you!!! https://goo.gl/JQ8Nys Short video on how to use the fundamental rule of counting, also called the rule of product or simply the multiplication rule.
From playlist Probability and Counting
MIT 14.01 Principles of Microeconomics, Fall 2018 Instructor: Prof. Jonathan Gruber View the complete course: https://ocw.mit.edu/14-01F18 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP62oJSoqb4Rf-vZMGUBe59G- In this lecture, Prof. Gruber takes what the class has alre
From playlist MIT 14.01 Principles of Microeconomics, Fall 2018