In which of the following market structures do firms produce the welfare-maximizing level of output?

Question

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In perfect competition, firms produce the welfare-maximizing level of output because each firm is a price-taker and cannot influence the market price. Therefore, each firm produces where its marginal cost equals the market price, which results in allocative efficiency and maximizes social welfare. In monopolistic competition and monopoly, firms have market power and may not produce the welfare-maximizing output level as they prioritize their own profits.

In Which of the Following Market Structures Do Firms Produce