Principles of Microeconomics / Unit 2 MIC 0139 short lesson, about 20 seconds
The Efficiency Condition
Captions available
The idea
Equilibrium is efficient under two conditions: a competitive market, with no one able to set the price, and exclusive, transferable property rights, so every cost and benefit lands on a trader.
In practice
A grocer who could not stop shoplifters would stock nothing.
Where people slip
Units eight through twelve are where a condition fails: one seller, or a cost falling on people outside the trade.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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