What is a major consequence of perfect competition in a market?

A major consequence of perfect competition in a market is that it leads to efficient resource allocation. In a perfectly competitive market, many buyers and sellers compete, which means that prices are determined by supply and demand. This competition encourages businesses to produce goods and services at the lowest possible cost, ensuring that resources are used effectively. For example, if a bakery sells bread at a lower price than others, more customers will buy from them, pushing other bakeries to improve their efficiency or lower their prices. This process helps ensure that consumers get the best products at fair prices while preventing any single seller from dominating the market.