True or false: Perfectly competitive markets lead to efficient production and consumption.
Answer (2)
The statement is true; perfectly competitive markets indeed lead to efficient production and consumption. This efficiency arises from price-taking behavior, optimal resource allocation, and economies of scale. Consumers benefit from lower prices and higher efficiency in their market interactions. ;
The statement is true; perfectly competitive markets do lead to efficient production and consumption due to price-taking behavior, optimal resource allocation, and firms operating at efficient scales. This market structure ensures that resources are directed toward producing goods that consumers want the most, maximizing overall welfare. An example of this is the agricultural market, where competition drives efficiency and lower prices.
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