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The hemline index is a theory that suggests that skirt length (hemlines) rise or fall along with stock prices. The most common version of the theory is that skirt lengths get shorter in good economic times (1920s, 1960s) [1] and longer in bad, such as after the 1929 Wall Street crash. However, the reverse has also been proposed with longer ...
In economics, an expansion path (also called a scale line [1]) is a path connecting optimal input combinations as the scale of production expands. [2] It is often represented as a curve in a graph with quantities of two inputs, typically physical capital and labor , plotted on the axes.
The maximum theorem provides conditions for the continuity of an optimized function and the set of its maximizers with respect to its parameters. The statement was first proven by Claude Berge in 1959. [1] The theorem is primarily used in mathematical economics and optimal control.
In typography, line length is the width of a block of typeset text, usually measured in units of length like inches or points or in characters per line (in which case it is a measure). A block of text or paragraph has a maximum line length that fits a determined design. If the lines are too short then the text becomes disjointed; if they are ...
The theory entails that there is a limit to how much one factor can be substituted for another. When production reaches a point where substitution between the factors becomes impossible (MP LK), the isoquant becomes positively sloping. No rational entrepreneur will operate at a point outside the ridge lines (Region of Economic Nonsense). [1]
Charles S. Peirce proposed an economic theory of scientific experimentation in 1876, which sought to maximize the precision of the estimates. Peirce's optimal allocation immediately improved the accuracy of gravitational experiments and was used for decades by Peirce and his colleagues.
An economic model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified, often mathematical, framework designed to illustrate complex processes.
However, there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken. Marshall's original introduction of long-run and short-run economics reflected the 'long-period method' that was a common analysis used by classical political economists.