competitive market may fail to produce a Pareto efficient outcome under the condition of changing technology. Price taking firms … social contribution of the technological or technical change, and thus the market fails. Firms with elastic labor demand will … a second best policy that corrects the market failure with a small dead weight loss. This policy does not require any …

the market itself--not by government--led, via an invisible hand, to the greatest possible welfare for society as a whole … interference ultimately benefits neither the market nor society. Steven Medema explores what has been perhaps the central … controversy in modern economics from Smith to today. He traces the theory of market failure from the 1840s through the 1950s and …