In a perfectly competitive market, what best describes the relationship between price, marginal cost, and allocative efficiency?

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In a perfectly competitive market, what best describes the relationship between price, marginal cost, and allocative efficiency? Question 8Answer a. Price is equal to marginal cost, ensuring allocative efficiency b. Price is greater than marginal cost, ensuring allocative efficiency c. Price is less than marginal cost, ensuring allocative efficiency d. Price is unrelated to allocative efficiency

Posted Date: Jun 11, 2024 09:11 AM

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In a perfectly competitive market, what best describes the relationship between price, marginal cost, and allocative efficiency?

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