LESON4B

LESON4B - Econ 275 - Public Finance - Winter 1994 - 1/18/94...

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Econ 275 - Public Finance - Winter 1994 - 1/18/94 - Lesson #4 - leson4b.275-- Page -- Admin Reading assignment due Thursday in class. Will discuss briefly. Needs to be typed. Discuss project. Next Tuesday will need to have groups formed and a 1 page proposal. Actually, I ought to change it to next thursday if I'm going to have the proposal due. Handout. Don't worry about appendix 2a (5 minutes for Admin) Discuss term paper. Give deadline for group formation. Topic choice. Grading outline. Stress once again. (10 minutes) Finish up chapter 2 Any questions from last time. Review conditions for pareto efficiency. For most of the class when I refer to efficiency I will be referring to this notion of efficiency. Price = marginal cost. Price fully reflects preferences and resource costs. Now we can define what a market failure is. A market failure occurs when prices result in an allocation that is not pareto efficient. Basically this means a market failure occurs when price is not equal to marginal cost. Talk about marginal
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LESON4B - Econ 275 - Public Finance - Winter 1994 - 1/18/94...

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