Which of the following combinations of theorems and their subjects are correctly matched?

(A) Modigliani - Miller theorem : Price of goods and real return to factor
(B) Dorfman - Steiner theorem : Advertisement expenditure
(C) Arrow’s impossibility theorem : Social choice
(D) Stolper - Samuelson theorem : Capital structure
(E) Fishers separation theorem : Profit maximization motivation

Correct option is D

The correct answer is: (D)

Explanation:
The Modigliani-Miller theorem is related to the capital structure and suggests that, under certain conditions, a firm's value is independent of its capital structure. It does not directly concern the price of goods or returns to factors.

The Dorfman-Steiner theorem provides a framework for determining the optimal level of advertising expenditure in order to maximize the profit from a good or service.

​Arrow's impossibility theorem is a key result in social choice theory, which suggests that it is impossible to design a social welfare function that satisfies a set of reasonable conditions when transforming individual preferences into a collective decision.​

The Stolper-Samuelson theorem deals with the effects of trade and the distribution of income. It is not related to capital structure, but rather to how trade influences wage inequality and income distribution in an economy.

​The Fisher separation theorem suggests that a firm’s investment decision should be separated from the personal preferences of the owners, meaning that investment decisions should be made to maximize profits, independent of the owners’ risk preferences

Therefore, statements B, C and E are correct.