When _____ there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at the right price.

MC = MR

No worries! We‘ve got your back. Try BYJU‘S free classes today!

MC = AC

No worries! We‘ve got your back. Try BYJU‘S free classes today!

MC = AR

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

AR = MR

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C MC = AR
When MC = AR, there will be allocative efficiency meaning thereby that the cost of the last unit i.e. MC is exactly equal to the Price. It happened in the long run under perfect competition.

Suggest Corrections

Similar questions

Q. When _______, there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that right goods are being sold to the people at the right price.

Q. The price which a consumer would be willing to pay for a commodity equals to his ________.

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced at Rs 10 and the consumer’s income is Rs 40.

(i) Write down all the bundles that are available to the consumer.

(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40.

Q. A consumer buys

100

units of

G o o d - Y

R s . 5

per unit. The price elasticity of demand for the good is

2

. At what price will he be willing to buy

140

units of

G o o d - Y

Q. Which right talks about the consumers' accessibility to a variety of goods at competitive price?

Join BYJU'S Learning Program

When _____ there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at the right price.

The correct option is C MC = ARWhen MC = AR, there will be allocative efficiency meaning thereby that the cost of the last unit i.e. MC is exactly equal to the Price. It happened in the long run under perfect competition.

The correct option is C MC = AR
When MC = AR, there will be allocative efficiency meaning thereby that the cost of the last unit i.e. MC is exactly equal to the Price. It happened in the long run under perfect competition.