Is the competitive market fair?
Unfair:1. The result is not fair.
2. The rules are not fair.
Increase total utility: charge the dollars from the rich and give them to the poor.
The marginal benefit is based
O on the utility function.
Fairness does not mean that same income and same outcome, but the same
The government need to find a way to achieve greater efficiency and a
certain degree of fairness.
But now, it seems that a huge amount of people are living in poverty and a lot of people are living with extra affluence.
We need to make people both have basic necessities.
CHAPTER 6 Government Actions in Markets