Cocktail Party Economics discusses the topics of efficiency and equity within certain conditions and markets. As it says in MEL, efficiency means operating at the lowest possible cost for whatever a company is producing. When an economy is considered efficient, any attempts to make something better off would not be possible without making it worse. Furthermore, production is efficient when the production is produced at the lowest possible cost along with variable inputs of production as it says in MEL. On the other hand, equity is the concept a market is the apportionment of resources or goods among the people is considered fair as it says in MEL. Many economists argue that efficiency is the important concept in markets, as “we want to use
