A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency​ mean?   A. Firms use an input combination that minimizes cost and maximizes output.   B. Production occurs at the lowest average total cost.   C. Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit.   D. Each firm produces up to the point where all scale economies are exhausted.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency​ mean?
 
A.
Firms use an input combination that minimizes cost and maximizes output.
 
B.
Production occurs at the lowest average total cost.
 
C.
Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit.
 
D.
Each firm produces up to the point where all scale economies are exhausted.
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