In a perfectly competitive market, each firm maximizes its profit by choosing only the quantity to produce. Regardless of whether the firm makes an economic profit or incurs an economic loss, is the short-run equilibrium efficient?

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Yes. The firm is a price taker and the market outcome is efficient because at the short-run equilibrium, marginal social benefit equals marginal social cot.

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Yes. In a perfectly competitive market, each firm chooses only the quantity to produce, so resource use is efficient in the short run but not the long run.

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No. the perfectly competitive firm chooses its market price and the quantity to produce.

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No. In a perfectly competitive market, each firm chooses the price that maximizes its economic profit.

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No. The market is efficient only in the long run when economic profit equals zero.

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