A perfectly competitive system results in an efficient allocation of resources among firms and an equal distribution of final products among households.

Question

Quizplus · Accepted Answer

While a perfectly competitive system does result in an efficient allocation of resources among firms due to price and output decisions being driven by market demand and supply, it does not guarantee an equal distribution of final products among households. Distribution is influenced by individual purchasing power and choices, not the market structure itself.

A Perfectly Competitive System Results in an Efficient Allocation of Resources