Which of the following is the correct option?
Does the market system result in allocative efficiency? In the long run, perfect competition
A. results in allocative efficiency because firms produce where price equals marginal cost.
B. does not result in allocative efficiency because firms enter and exit until they break even where price equals minimum average cost.
C. results in allocative efficiency because firms produce where the marginal benefit consumers receive from consuming the last unit of the good sold is greater than the marginal cost.
D. does not result in allocative efficiency because price does not equal the marginal benefit consumers receive from consuming the last unit of the good sold.
E. does not result in allocative efficiency because firms produce an identical product that offers consumers no variety.