The equality of Pand MC means the firm is achieving allocative efficiency, since the industry is producing the amount of product at a price that covers its costs. market efficiency, because price equals average cost. allocative efficiency, since the industry is producing the amount of product that equates society's valuation of that product and the price of the product. productive efficiency, since the industry is producing the amount of product that equates society's valuation of that product and the price of the product.