A competitive market outcome

Question

Quizplus · Accepted Answer

A competitive market outcome maximises total surplus because it ensures that goods and services are produced at the lowest possible cost and sold at the highest possible price. This leads to an efficient allocation of resources and maximises the total amount of benefits to consumers and producers. While a competitive market does not necessarily generate perfect equality among the members of society, it does provide opportunities for individuals to succeed through hard work and innovation.

A Competitive Market Outcome