What does RFMT mean in ACADEMIC & SCIENCE
RFMT stands for Roemer's Fundamental Marxian Theorem, which was proposed by economist John Roemer in 1974. This theorem is significant in economic theory, as it provides insight into the nature of capitalist economic systems and the factors that influence them. In this article, we will take a closer look at what RFMT means, its implications for capitalism, and why scholars consider it so important.
RFMT meaning in Academic & Science in Academic & Science
RFMT mostly used in an acronym Academic & Science in Category Academic & Science that means Roemer's Fundamental Marxian Theorem
Shorthand: RFMT,
Full Form: Roemer's Fundamental Marxian Theorem
For more information of "Roemer's Fundamental Marxian Theorem", see the section below.
Definition
At its core, RFMT is a mathematical theorem which states that when certain conditions are met - namely that all firms compete under perfect competition and all resources are fully utilized - then the return on capital will equal the average rate of profit associated with those investments. In other words, returns to capital investment will be directly proportional to the amount of resources used to produce those capital goods. Thus, according to RFMT, any distortion in prices due to market power or other external influences would not be reflected in returns from investments.
Implications
RFMT has implications for understanding how capitalist economies work. For example, it suggests that when an economy operates under perfect competition - meaning one where all resources are used up efficiently and there are no external distortions such as monopoly power - then investment decisions should be made solely based on their anticipated rate of return. Further, since profits should remain relatively constant across industries regardless of whether they are competitive or not, RFMT may help explain why governments use antitrust laws to prevent monopolistic practices.
Essential Questions and Answers on Roemer's Fundamental Marxian Theorem in "SCIENCE»SCIENCE"
In conclusion, RFMT is an important mathematical theorem which has implications for our understanding of capitalist economies. It states that when certain conditions are met - namely perfect competition and full resource utilization - then returns from investments should remain relatively constant regardless of any external market distortions. Moreover, it helps explain why governments intervene with antitrust laws whenever they suspect businesses have taken advantage of market power or engaged in unfair competitive practices.
RFMT also stands for: |
|
| All stands for RFMT |