Saving "the Market” out of Cambridge: “Pareto Optimality”
We call the buying-and-selling in the market “free trade” or “voluntary exchange.” Put it differently, the market is a conceptual venue where the so-called “win-win game” is played. More specifically, no seller would like to “supply the product” at a lower “price” (meaning a benefit : don’t get it wrong) than the marginal “production” cost. No buyer would like, either, to buy the product at a higher “price” (literally) than the marginal utility. Lo and behold, the consequence of each and every exchange is a happy ending . Now, let us line up all the marginal benefits “as revealed in the market” from the highest to the lowest on one hand; all the marginal production costs from the lowest to the highest on the other hand. You’re right, in economics jargon: 1)...