whyoptimal solution is better than the golden rule

why optimal solution is better than the golden rule

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Expert Solution

Golden rules are the principles that are formed to be applicable generally to the similar situations as stated in the rule where as optimal situation is the customised solution for the given situation or activity that satisfies the activity to the maximum [which can be based on golden rules or may be some amendements are made in golden rule to apply that optimal solution to the given problem].

Therefore, it can be said that optimal solutioon are worth satisfying the situation thus they are better than the golden rules.

For, example law of demand [in microeconomics] tells bout the inverse relation between the price and the quantity demanded at given prices.

But , in some conditions there are exceptions of law of demand too , for example veblen goods[also called article of distinction] in which as the prices rise there will be increase in demand.

So, here the golden rule is failed but the optimal solution of categorizing such category differntly gives us better way to deal.

Rahul Sunny answered 1 year ago

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