Author Question: In the absence of other market failures, allocative efficiency is achieved in a perfectly ... (Read 22 times)

Gabby · **on:** Oct 12, 2022

In the absence of other market failures, allocative efficiency is achieved in a perfectly competitive industry because
◦ firms do not need to maximize profits.
◦ the industry produces a level of output such that the marginal cost to producers equals the marginal benefit to consumers.
◦ the industry produces a level of output such that there are increasing returns to scale.
◦ there are barriers to entry.
◦ the industry produces a level of output such that the marginal cost of production is minimized.

kaynelson17 · **Reply #1 on:** Oct 12, 2022

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