Last class, only the price he sees in order to make good decisions. What is the difference of the trial and error from the government versus the market? Just hypothetical. We need to get good outcomes that the market was not capable of doing.
30 bucks to pay for making a guitar would be bad. It is better below.
What is the problem making it for S4? Marginal cost of the 25$ dollars. When he makes a guitar the world is poorer by 25.
S2 costs 15 dollars, there is a 10 dollar allocation on the table. S2 and S4 would have to get together and split the cost to make the world richer.
Everyone can do better off if D4 gets his guitar and gives it to D2. The world is not hurt at all. D4 and S2 trading would make the world richer. Lie that you made the bike and I'll give you half the cut from it.
After 15 minutes of story telling,
Planners do not have enough information because it is changing rapidly. They forget what and where we need it. The only way to live in this complex world is to disperse/decentralize ideas the best way possible. Allowing different states would work in a separate ways without the federal governments approval.
Some properties of EQ.
Consider a stylized economy with 5 consumers and 5 selllers, not necessarily distinct.
Rent control, Price ceilings
Once you do a nice thing, you do a moral obligation to do it all the time.
Beat the competition out by checking out the obitenuary from the NY Times.
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