Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 2
9708Efficiency and market failure
When is allocative efficiency achieved?
- Awhen a perfectly competitive market is in equilibrium
- Bwhen everybody who needs the product can obtain it
- Cwhen firms produce at the lowest possible cost
- Dwhen monopolistic firms make normal profits
As printed in the paper
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Correct answer: A. when a perfectly competitive market is in equilibrium
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