Uncoordinated decisions in perfect competition lead to mass confusion and inefficiency.

Question

Quizplus · Accepted Answer

In perfect competition, all firms are price takers and decisions are coordinated through market forces of supply and demand. There is no central authority or coordination among firms, but this does not necessarily lead to mass confusion or inefficiency. In fact, perfect competition is often considered to be the most efficient market structure.

Uncoordinated Decisions in Perfect Competition Lead to Mass Confusion and Inefficiency