Which of these statements is generally accepted by economists? Perfect competition
A) provides both equity and efficiency.
B) provides equity but not necessarily efficiency.
C) provides efficiency but not necessarily equity.
D) generally satisfies neither efficiency nor equity.

Question

Quizplus · Accepted Answer

Perfect competition is generally accepted as providing efficiency due to the long-run equilibrium where firms produce at minimum average cost and consumer surplus is maximized. However, it is not necessarily accepted as providing equity as it does not address issues such as income inequality or distribution of resources.

Which of These Statements Is Generally Accepted by Economists? Perfect