Question: Why does producing where P = MC indicate allocative efficiency? Because when producing at P = MC you are allowing for there to be no

Why does producing where P = MC indicate allocative efficiency?

Because when producing at P = MC you are allowing for there to be no waste

2.Why does producing at the minimum of ATC indicate productive efficiency?

3.Using the notion of total surplus, explain why perfectly competitive firms are efficient by monopolies are not.Be sure to draw graphs to explain your answer.

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