Question

Long-run equilibrium in perfectly competitive markets meets two important conditions: allocative efficiency and productive efficiency. These two conditions have important implications. First, resources are allocated to their best
altemative use. Second, they provide the maximum satisfaction attainable by society. Keeping these two conditions into consideration, if a firm in perfect competition has to incur a total fixed cost of Rs. 20 and the total variable cost is as
follows:
Units
Variable Cost
1
10
2
19
3
4
27
34
5
40
6
7
45
51
8
58
9
66
10
75​

Answer 1

Answer:

• Long-run equilibrium in perfectly competitive markets meets two important conditions: allocative efficiency and productive efficiency. These two conditions have important implications. First, resources are allocated to their best alternative use. Second, they provide the maximum satisfaction attainable by society.