In a perfectly competitive market,a(n)________ occurs because ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, resources are allocated efficiently, and total surplus is maximized. This occurs because firms are price takers, and they produce at the point where marginal cost equals marginal revenue, which is the efficient outcome. The fair rules condition is also met in a perfectly competitive market, but this does not necessarily lead to an efficient outcome. Deadweight loss occurs when there is a market failure, such as a price floor or a price ceiling, which prevents the market from reaching the efficient outcome.

In a Perfectly Competitive Market,a(n)________ Occurs Because ________

In a Perfectly Competitive Market,a(n) Occurs Because