Competitive markets do NOT result in:
A)the largest possible economic profit for firms.
B)goods going to the consumers who will receive the highest marginal benefit from the good.
C)the largest possible economic surplus.
D)goods produced at the lowest possible marginal cost.

Question

Quizplus · Accepted Answer

Competitive markets do not result in the largest possible economic profit for firms because in a perfectly competitive market, firms operate at the point where price equals marginal cost, resulting in zero economic profit in the long run.

Competitive Markets Do NOT Result In