Has anybody come across a nice, intuitive (i.e. neither formal nor technical) way to demonstrate how markets yield both productive and allocative efficiency?
I suppose the allocative argument requires just a very superficial treatment of the first fundamental theorem, which is doable. But what about productive efficiency?
I'm teaching Econ 101 and I don't like the textbook's treatment of the topic -- it basically asserts efficiency without even trying to argue it.