Combine the concepts of productive and allocative efficiency to explain how a perfectly competitive market achieves overall efficiency.

• A. Overall efficiency is achieved when firms produce at the minimum average total cost and equate marginal benefit with marginal cost.
• B. Overall efficiency is achieved when firms equate marginal revenue with average revenue.
• C. Overall efficiency is achieved when firms produce at the maximum average total cost and equate marginal benefit with marginal cost.
• D. Overall efficiency is achieved when firms equate average total cost with price.

Answer: (A)