Determine market efficiency cause price equals average cost

Reference no: EM13213221

In long-run equilibrium, P = minimum ATC = MC. The equality of P and minimum ATC means the firm is achieving allocative efficiency. productive efficiency. consumption efficiency. market efficiency. The equality of P and MC means the firm is achieving 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. allocative efficiency since the industry is producing the amount of product at a price that covers the cost. market efficiency because price equals average cost.

Reference no: EM13213221

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