In a purely competitive industry, an optimal allocation of scarce resources occurs when A) P = AC. B) ^P⁼^MC. C) MR = AC. D) TR = TC.

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In a purely competitive industry, an optimal allocation of scarce resources occurs when P = MC. This is because at this point, the marginal cost of producing an additional unit of output is equal to the price that consumers are willing to pay for it. As a result, producers are producing the quantity of output that consumers demand, and there is no waste of resources.

In a Purely Competitive Industry, an Optimal Allocation of Scarce