<Li> Such markets are allocatively efficient , as output will always occur where marginal cost is equal to marginal revenue ( MC = MR ) . In perfect competition , any profit - maximizing producer faces a market price equal to its marginal cost ( P = MC ) . This implies that a factor 's price equals the factor 's marginal revenue product . It allows for derivation of the supply curve on which the neoclassical approach is based . This is also the reason why `` a monopoly does not have a supply curve '' . The abandonment of price taking creates considerable difficulties for the demonstration of a general equilibrium except under other , very specific conditions such as that of monopolistic competition . </Li>
<Li> Such markets are allocatively efficient , as output will always occur where marginal cost is equal to marginal revenue ( MC = MR ) . In perfect competition , any profit - maximizing producer faces a market price equal to its marginal cost ( P = MC ) . This implies that a factor 's price equals the factor 's marginal revenue product . It allows for derivation of the supply curve on which the neoclassical approach is based . This is also the reason why `` a monopoly does not have a supply curve '' . The abandonment of price taking creates considerable difficulties for the demonstration of a general equilibrium except under other , very specific conditions such as that of monopolistic competition . </Li>
in perfect ​ competition p ​ = mc is the condition that
in perfect ​ competition p ​ = mc is the condition that
factor 's price equals the factor 's marginal revenue product
factor 's price equals the factor 's marginal revenue product