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Pavitar Parkash Singh, Lovely Professional University Unit-22: Marginal Conditions of Paretian Optimum
Notes
Unit-22: Marginal Conditions of Paretian Optimum
CONTENTS
Objectives
Introduction
22.1 The Optimum Condition of Exchange
22.2 The Optimum Condition of Factor Substitution
22.3 The Condition of Optimum Degree of Specialization
22.4 The Condition of Optimum Factor Product Utilization
22.5 The Optimum Condition of Product Substitution
22.6 The Optimum Condition for Intensity of Factor Use
22.7 The Optimum Intertemporal Condition
22.8 Summary
22.9 Keywords
22.10 Review Questions
22.11 Further Readings
Objectives
After studying this unit, the students will be able to:
• Know the optimum condition of exchange.
• Understand the condition of optimum degree of specialization.
• Explain the condition of optimum factor product utilization.
• Know the optimum intertemporal condition.
Introduction
Most economists accede to that in the form of welfare standard and social welfare the practice of
re-establishment has proved as a vain attempt. So prominent lecturers of modern welfare economic
such as Hicks, Learner, Lange and others in the sense of Pareto have established some optimum
conditions of welfare. According to pareto optimum, Social welfare is maximum on that time, When
it is impossible to made better the condition of any power without bringing out from bad condition
of other people. Hicks has fixed maximum condition to know social optimum of Parato which relates
LOVELY PROFESSIONAL UNIVERSITY 333
