Does the market system result in allocative efficiency? in the long run, perfect competition

Business

1 answer:

Inga [223]4 years ago

7 0

C.

Allocative efficiency in simple terms basically means there is no wastage, therefore if producers produce at price equals marginal coat, they are producing at the point where consumers are willing to pay that final price. Refer to the poorly drawn diagram for reference.

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Relevance and cost effectiveness

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