Table of Contents:

• The Economics of Market Capitalism
  
• Historical Context of Market Capitalism
  
• More on Historical Context of Market Capitalism
  
• Definition of Market Capitalism
  
• Definition of Decentralized Market Allocation
  
• A Full-Information, Well-Functioning Competitive Market Equilibrium is Efficient
  
• Definition of Competitive Market Equilibrium
  
• Properties of a Well-Functioning Competitive Market
  
• Market Failures
  
• Buyers and Sellers
  
• Diagram: Typical Competitive Market
  
• Consumer and Producer Surplus
  
• Allocative Efficiency Implies Maximum Gains from Trade
  
• Sources of Market Failure
  
• Monopolies and Cartels
  
• Externalities
  
• Collectively Produced/Consumed Goods
  
• More on Collectively Produced/Consumed Goods