As using diagram to illustrate Fisher's separation theroem,there is a production possibilities curve to display the investment and consumption at time1 and 2.My question is if i assumed a point on the PPC,(150 200),Is that means 150 ,200 resouces that individual shareholder will receive as dividend at time 1 and 2,
OR
means all the shareholders will totally receive 150 ,200 resouces at time 1 and 2?So,if there are 2 shareholders in the company with equal share,each of them would receive 75 at time 1 and 100 at time 2.
Which one is right?
THX
Based on the information you provided, a point on the Production Possibilities Curve (PPC) represents the combination of investment and consumption at a particular time. However, it does not directly represent the specific resources that individual shareholders will receive as dividends at time 1 and 2.
In the context of Fisher's separation theorem, the PPC represents the trade-off between investment and consumption. The point (150, 200) on the PPC indicates that at that particular allocation, the economy is producing 150 units of investment and 200 units of consumption. The allocation of these resources among individual shareholders would depend on factors such as their ownership shares and the distribution policy of the company.
If there are two shareholders with equal shares in the company, and assuming the resources are distributed equally, each shareholder would receive 75 units of investment at time 1 and 100 units of consumption at time 2. However, this distribution would depend on the specific agreements or policies in place.
To determine the exact distribution of resources among individual shareholders, you would need additional information regarding ownership shares, dividend policies, or any other relevant factors related to the specific situation.