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Perfect Competition and Efficiency
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Perfect Competition and Efficiency
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11. Perfect Competition / Perfect Competition and Efficiency / Problem 8
Problem 8
Why does the equality of marginal benefit and marginal cost lead to allocative efficiency?
A
It ensures that resources are allocated according to consumer preferences.
B
It ensures that the average total cost is minimized.
C
It ensures that the price is equal to the average revenue.
D
It ensures that firms maximize their profits.
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