Perfectly competitive markets satisfy the condition for

Question

Quizplus · Accepted Answer

Perfectly competitive markets are characterized by both efficiency in production and consumption, as well as consistency of production and consumption. Efficiency in production means that firms produce goods at the least cost possible, while efficiency in consumption means that consumers can maximize their satisfaction with the goods they purchase. Consistency of production and consumption means that the quantity of goods produced and consumed are the same, which is a fundamental condition for the market to clear.

Perfectly Competitive Markets Satisfy the Condition for