In long-run equilibrium, purely competitive markets
A)minimize total cost.
B)maximize the sum of consumer surplus and producer surplus.
C)yield economic profits to most sellers.
D)inevitably degenerate into monopoly in increasing-cost industries.

Question

Quizplus · Accepted Answer

In long-run equilibrium, purely competitive markets maximize the sum of consumer surplus and producer surplus, achieving allocative and productive efficiency.

In Long-Run Equilibrium, Purely Competitive Markets