The highest and best form of efficiency is the spontaneous cooperation of
a free people.
...
Woodrow Wilson
Every economist learns to parrot "supply and demand," but
does it work? Does it drive firms to produce efficient combinations of outputs
in efficient ways, or does it toss concern for the common good under the
relentless wheels of individual greed? What if one person's freedom of
choice impairs that of another? Should government arbitrate the conflict?
When is collective government action needed? Should we trust it? What
about fairness?
Let's see.
I-C. Efficiency and competition
1. Marginal Cost and Supply
2. Market Efficiency
3. External Effects
4. Public Goods
5. Rational Ignorance
6. What's Fair is Fair
