FARE 1040 Lecture Notes - Lecture 1: Perfect Competition, Marginal Cost, Coase Theorem
25 Mar 2020
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Coase (1988)- the firm, the market, and the law. Does not believe that a failure of exposition is the main reason why economists have found his argument so difficult to assimilate. Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses (robbins) Economics is the science of human choice. Robbins says economic approach should be studied more generally throughout social sciences. Microeconomics used to be called value and distribution covering firms, industries, and markets. Economists study: how consumers choose their goods and services to purchase based on income, how producers decide what products and services to make and sell and what quantities. The decisions of consumers and producers are brought together through the theory of exchange. If theories in economics constitute choice then they should easily be applicable to human choices made in law or politics.
