If a perfectly competitive market is in long-run equilibrium, then the market is: productively efficient only. neither productively nor allocatively efficient. both productively and allocatively efficient

If a perfectly competitive market is in long-run equilibrium, then the market is: productively efficient only. neither productively nor allocatively efficient. both productively and allocatively efficient

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section4.1: Markets And Competition

Problem 1QQ

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Question

If a perfectly competitive market is in long-run equilibrium, then the market is:

productively efficient only.

neither productively nor allocatively efficient.

both productively and allocatively efficient.

Definition Definition State in which the marginal benefit to a consumer is equal to the marginal cost of producing a product. Allocative efficiency occurs when all the market participants (buyers and sellers) have all of the knowledge required to make informed decisions regarding consumption and production of goods and services.

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