Many economists consider perfect competition to be the most desirable market structure because they believe it generates the
A) highest average cost
B) lowest prices and output
C) greatest economic profit
D) lowest prices and greatest output
E) greatest normal profit

Question

Quizplus · Accepted Answer

Perfect competition is considered most desirable by many economists because it leads to the lowest prices and greatest output due to firms producing at the most efficient scale and competitive pressures keeping prices low.

Many Economists Consider Perfect Competition to Be the Most Desirable