Of the four major market structures,perfect competition is the best at achieving economic efficiency.

Question

Quizplus · Accepted Answer

Perfect competition promotes economic efficiency by maximizing consumer surplus and minimizing producer surplus, achieving allocative and productive efficiency, and incentivizing innovation and cost reduction. The other market structures, such as monopolies and oligopolies, may lead to market power and market failures, limiting economic efficiency.

Of the Four Major Market Structures,perfect Competition Is the Best