ECON 1B03 Lecture Notes - Lecture 3: Inverse Demand Function, Ceteris Paribus, Demand Curve

When an owner of a productive resource deploys that resource where he gets the highest price for it, he is not only deploying that resources where it will create greatest value of final output but is also maximizing his own welfare. The greed of the owner and the efficient allocation of productive resources are congruent in a capitalist economy.