Merits of Perfect Competition - Part 3

[savio13]

5. No exploitation: All the conditions or assumptions of perfect competition ensure that consumers are charged a price equal to marginal cost unlike other forms of market where price > marginal cost.

6. Optimum Production: Perfect competition enables a firm to produce at a point where the average cost is lowest. The long-run equilibrium is obtained when P=AR=MR=AC=MC. It leaves no scope for excess capacity in production.