Why Do Economists Consider Perfect Competition to Be the Most

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The Answer is Perfect competition is the most efficient market structure because, in the long run, each firm in the market will be producing at its minimum average cost, or per-unit cost (see Figure 10-9a in the text, for example). This means that consumers get desired goods and services at the lowest possible prices, and also that the firms are economizing on society's scarce resources to the greatest extent possible.
Figure 10-9

Perfect competition is the most efficient market structure because, in the long run, each firm in the market will be producing at its minimum average cost, or per-unit cost (see Figure 10-9a in the text, for example). This means that consumers get desired goods and services at the lowest possible prices, and also that the firms are economizing on society's scarce resources to the greatest extent possible. Figure 10-9

Why Do Economists Consider Perfect Competition to Be the Most

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