What is the condition for allocative efficiency in a perfectly competitive market?

Allocative efficiency in a perfectly competitive market occurs when resources are distributed in a way that maximizes total benefit to society. This means that the price of a good or service reflects the true cost of producing it, and consumers are willing to pay exactly what it costs to produce that good. In this situation, the quantity of goods produced is equal to the quantity demanded, so there is no excess supply or demand. For example, if the market price of apples is set at $2 per pound, and this is also the cost of producing them, then the market is allocatively efficient because consumers value the apples at that price and producers cover their costs. When this balance is achieved, society benefits the most from the resources available.