Provided that there are no external benefits or costs, in the long run, perfect competition will result in an efficient allocation of resources because P = MC.

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Under perfect competition, in the long run, firms will produce where P = MC, which will result in an efficient allocation of resources. This is because under perfect competition, there is no market power and firms cannot influence the price. Therefore, the price reflects the marginal cost of production, and resources are allocated efficiently. However, this assumes that there are no external benefits or costs, such as pollution or public goods, which can lead to market failure.

Provided That There Are No External Benefits or Costs, in the Long