Friday, January 27, 2012

Chapter 16 Frideman

There are three ways in which the market outcome could be changed. (Marshall improvement? NO!)
i. The bureaucrat-god could have the same quantity of the good produced in the same way, while changing its allocation--who gets it. 
ii. He could produce the same quantity and allocate it to the same people, while changing how it is produced. 
iii. He could change the quantity.

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