Final answer:
The correct answer is "D. A and C only," as its reflects the conditions for allocative efficiency in a perfectly competitive market where price equals marginal cost, and all consumers willing to pay at least marginal cost to receive the good.
Step-by-step explanation:
When an industry exhibits productive efficiency, it means that production is occurring in such a way that additional output could not be produced without increasing the average total cost. This is typically represented by the condition where the price of the good (P) is equal to the minimum average total cost (minATC). In the context of perfect competition, however, allocative efficiency occurs when firms produce at a level where the price equals the marginal cost (P = MC), thus ensuring that the benefits to consumers, reflecting their willingness to pay, are equal to the marginal costs to society of producing those units.
In this scenario, the correct answer to the question would be "D. A and C only," where the price equals the marginal cost, which is a characteristic of a perfectly competitive market that maximizes profits and achieves allocative efficiency. The reference to minATC relates to productive efficiency but not necessary for allocative efficiency in the context described.