At a competitive equilibrium, Mπ = 0, but at an efficient equilibrium MEC = 0.

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At a competitive equilibrium, Mπ (marginal private benefit) equals the marginal private cost (MC), which implies that resources are allocated efficiently for the market transaction. However, it does not necessarily mean that the social cost or marginal external cost (MEC) is zero. On the other hand, at an efficient equilibrium, both MPC and MEC would be equal to zero, indicating an optimal allocation that takes into account all the social costs and benefits.

At a Competitive Equilibrium, Mπ = 0, but at an Efficient