In a perfectly competitive market,producers efficiently use their scarce resources to produce what consumers want and as a result they achieve:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, producers efficiently use their resources to produce what consumers want at the lowest possible cost. Allocative efficiency is achieved when the price of a good or service is equal to the marginal cost of its production, meaning that resources are allocated to produce the products that consumers want the most with the minimum amount of waste. Therefore, the correct answer is Allocative efficiency (option B).

In a Perfectly Competitive Market,producers Efficiently Use Their Scarce Resources