In a perfectly competitive market, which of the following statements best describes the relationship between market equilibrium and allocative efficiency in the long run?

In a perfectly competitive market, market equilibrium occurs when the quantity of goods supplied equals the quantity demanded at a certain price. This situation leads to allocative efficiency, which means that resources are being used in a way that maximizes the overall benefit to society. In the long run, firms in perfect competition produce at a level where their costs are minimized, and the price reflects the true cost of resources used. For example, if a bakery makes just enough bread to meet local demand, it ensures that all the bread produced is sold, and no resources are wasted. Therefore, at equilibrium, the market not only balances supply and demand but also makes sure that resources are allocated in the best way possible for everyone involved.