In the Long Run, a Perfectly Competitive Industry Is Allocatively

Multiple Choice

In the long run, a perfectly competitive industry is allocatively efficient because

A) the opportunity cost of resources needed to produce the last unit of output just equals the marginal value to consumers of the last unit
B) it maximizes producer surplus
C) consumer surplus could be larger if the price were lower
D) production occurs at the lowest average total cost
E) marginal costs are low