In a competitive market,maximum efficiency is achieved because of:

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In a competitive market, firms are forced to keep their prices low due to pressure from other firms, which leads to efficiency in production to maintain profits. This leads to the optimal use of resources, as firms are incentivized to use resources in the most efficient manner to keep costs low and remain competitive. Differentiated products and high barriers to entry may lead to oligopolistic or monopolistic markets, which may result in reduced efficiency. Significant market power may also lead to reduced efficiency, as firms may become complacent and not use resources in the most efficient manner.

In a Competitive Market,maximum Efficiency Is Achieved Because Of