Eggs are sold in a perfectly competitive market.No persons other than the buyers and sellers of eggs are affected in any way when eggs are traded in the market.It then follows that:

Question

Quizplus · Accepted Answer

In a perfectly competitive market with no externalities, the price of goods equals both the marginal social cost (MSC) and the marginal social benefit (MSB). This is because all costs and benefits are borne by the buyers and sellers in that market, with no spillover effects on any other parties. Hence, the equilibrium price represents an efficient allocation of resources. Therefore, both (a) and (b) are correct.

Eggs Are Sold in a Perfectly Competitive Market