In pure competition, resources are optimally or efficiently allocated when production occurs at the output level where P = MC.

Name: In pure competition, resources are optimally or efficiently allocated when production occurs at the output level where P = MC.
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In pure competition, optimal allocation of resources occurs when the price (P) equals the marginal cost (MC) of production, ensuring that goods are produced up to the point where the last unit provides a benefit equal to its cost of production.

In Pure Competition, Resources Are Optimally or Efficiently Allocated When