In long-run perfectly competitive equilibrium,economic efficiency is achieved because

Question

Quizplus · Accepted Answer

In long-run perfectly competitive equilibrium, economic efficiency is achieved when the price equals the minimum long-run average cost for every firm in the industry, which ensures that resources are used efficiently. Additionally, price equals long-run marginal cost for every firm in the industry, which ensures that firms are producing at an optimal level of output. Therefore, both answer choices a and c are correct.

In Long-Run Perfectly Competitive Equilibrium,economic Efficiency Is Achieved Because