Firms in perfectly competitive markets can achieve _____ because they produce only the units that buyers value and no more.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, firms achieve efficiency in allocation by producing quantities where the price (what buyers are willing to pay) equals the marginal cost (the cost of producing one more unit), ensuring that resources are not wasted and that production is aligned with consumer preferences.

Firms in Perfectly Competitive Markets Can Achieve _____ Because They