ECON 460 Lecture Notes - Lecture 12: Marginal Cost, Economic Equilibrium, Market Failure

• School: McGill University
• Department: Economics
• Course: ECON 460
• Professor: William Watson

Document Summary

If suppliers and consumers come together in a market, the equilibrium price will reflect marginal cost and marginal benefits => optimal. Ou(cid:374)ds (cid:448)er(cid:455) mar(cid:454)ist i(cid:374) regards to household (cid:449)ork (cid:271)ei(cid:374)g see(cid:374) as (cid:858)drudger(cid:455)(cid:859) a(cid:374)d sla(cid:448)e-like. Mill talks a(cid:271)out the fa(cid:272)t that so(cid:373)e i(cid:374)di(cid:448)iduals atte(cid:373)pt to de(cid:272)ide (cid:858)irre(cid:448)o(cid:272)a(cid:271)l(cid:455)(cid:859) a(cid:271)out (cid:449)hat is (cid:271)est for them in the future e. g. companies offering contracts for life (mcgill offers job for life to tenured professor). Mill = not a fan of joint-stock companies. Practical monopoly e. g. sewer companies (no point in having 4 different sets of pipes) Common outlook in england at that time that colonialization can be good for both civilisations involved= not a popular opinion nowadays. Mill(cid:859)s dis(cid:272)ussio(cid:374) of la(cid:374)d li(cid:374)ks i(cid:374)to the pri(cid:374)(cid:272)iple of the (cid:862)traged(cid:455) of the co(cid:373)(cid:373)o(cid:374)s(cid:863)= if la(cid:374)d is free, it will be sold too quickly for efficiency to take place.