In perfect competition, the condition that ensures that the right things are produced is A) MU_X = P_X. B) P = MC. C) P = ATC. D) MRP_L = ATC.

Question

Quizplus · Accepted Answer

In perfect competition, the condition that ensures the right things are produced is when price (P) equals marginal cost (MC). This ensures that resources are allocated efficiently, as firms produce up to the point where the cost of producing one more unit equals the revenue it generates.

In Perfect Competition, the Condition That Ensures That the Right