Definitions for corner solution
cor·ner so·lu·tion

WiktionaryRate this definition:5.0 / 2 votes

1. corner solutionnoun

   A solution to a minimization or maximization problem where an interior solution is infeasible.

WikipediaRate this definition:0.0 / 0 votes

1. Corner solution

   A corner solution is a special solution to an agent's maximization problem in which the quantity of one of the arguments in the maximized function is zero. In non-technical terms, a corner solution is when the chooser is either unwilling or unable to make a trade-off between goods.

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1. CORNER SOLUTION

   A corner solution refers to a situation in economics where an optimal or preferred outcome occurs at the extreme or boundary of a set of possible options or choices. In this context, one or more variables or constraints reach their upper or lower limit, preventing a complete optimization of all factors involved. This can result in an outcome that is not fully satisfying or efficient from a theoretical perspective. Corner solutions can arise in various economic models, such as in production, consumption, or resource allocation decisions.

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1. Corner solution

   A corner solution is a special solution to an agent's maximization problem in which the quantity of one of the arguments in the maximized function is zero. The more usual solution will lie in the non-zero interior at the point of tangency between the objective function and the constraint. For example, in consumer theory the objective function is the indifference-curve map of the consumer. The budget line is the constraint. In the usual case, constrained utility is maximized on the budget constraint with strictly positive quantities consumed of both goods. For a corner solution, however, utility is maximized at a point on one axis where the budget constraint intersects the highest attainable indifference curve at zero consumption for one good with all income used for the other good. Furthermore, a range of lower prices for the good with initial zero consumption may leave quantity demanded unchanged at zero, rather than increasing it as in the more usual case. In non-jargon English for the non-specialist, a corner solution is when the chooser is either unwilling or unable to make a tradeoff. In economics when someone says "I wouldn't buy that at any price" or "I will do X no matter the cost," those are corner solutions. Another example is "zero-tolerance" policies, or parents who are unwilling to expose their children to any risk, no matter how small and no matter what the benefits of the activity might be. "Nothing is more important than my child's safety" is a corner solution in its refusal to admit there might be tradeoffs. The term "corner solution" is sometimes used by economists in a more colloquial fashion to refer to these sorts of situations. The word "corner" refers to the fact that if one graphs the maximization problem, the optimal point will occur at the "corner" created by the budget constraint and one axis.

How to pronounce corner solution?

1. Alex

   US English

   David

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   Mark

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   Daniel

   British

   Libby

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   Mia

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   Karen

   Australian

   Hayley

   Australian

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   Indian

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   Neerja

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   Oliver

   British

   Wendy

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   Fred

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   Tessa

   South African

How to say corner solution in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of corner solution in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of corner solution in Pythagorean Numerology is: 9

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Corner_Solution
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Corner_Solution
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=corner solution