GENERAL KNOWLEDGE

Detailed explanation-1: -Perfect competition is an idealized market structure that achieves an efficient allocation of resources. This efficiency is achieved because the profit-maximizing quantity of output produced by a perfectly competitive firm results in the equality between price and marginal cost.

Detailed explanation-2: -Pareto efficiency implies that resources are allocated in the most economically efficient manner, but does not imply equality or fairness.

Detailed explanation-3: -Efficient resource allocation occurs when resources are allocated to their highest use. There is no alternative to using them further without making the others worse. In economics, resource allocation is efficient when the market operates perfectly competitive.