© 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster
Allocative Efficiency and Competitive Equilibrium
Producing What People Want: The Efficient Mix of Output
The condition that ensures that the right things are produced is P = MC.
Society will produce the efficient mix of output if all firms equate price and marginal cost.
The Efficiency of Perfect Competition