Question

Efficient allocation of resources is likely to be achieved under which market form?

• A. Monopoly
• B. Monopolistic competition
• C. Perfect competition
• D. Any market form

Answer 1

Answer: (C)

Perfect competition

Efficient allocation of resources is likely to be achieved under perfect competition market form. Under perfectly competitive market, following features are observed:a) the firm is a price takerb) the firm cannot influence the price

c) the amount the firm offers in the market is small relative to the market supply