Under a perfectly competitive price system
A)an equitable allocation of the available resources will always result.
B)there is no opportunity for individuals to trade amongst themselves.
C)there is no reason to expect that voluntary trading will result in an equitable allocation of the available resources.
D)none of these is correct.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, resources are allocated efficiently, but this does not guarantee an equitable distribution, as equity involves fairness, which is subjective and not necessarily achieved through market mechanisms.

Under a Perfectly Competitive Price System