33:522:334 Lecture Notes - Lecture 10: Marginal Utility, Toxic Waste, Upper Class

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Marginal uility the incremental beneit of each addiional unit. Anderson makes ,000, higher mu (has a physical disability) Eiciency argument (based on what an economist would do) take a litle money from brooks and give to anderson; 50k and 50k. On the chart, anderson will have a greater gain in happiness and brooks has a loss in happiness. Satz says igure out the eiciency argument but we haven"t igured out how to address equality. Satz says yes income is equal but people are sill not equal; anderson is sill disabled . In the previous example, satz says the world is making markets more eicient, not equal. Example: in an organ market, there"s an upright supply line and diagonal demand. Only dead people donate organs: economists would say allow others to donate their organs and create supply curve that is diagonal. Price goes down, demand goes up: satz says this targets the vulnerable and people have weak agency.

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