Unless markets are perfectly competitive, they may fail to maximize the total benefits to buyers and sellers.

Perfectly Competitive

A perfectly competitive market is one where there are many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to efficient prices.

Maximize

To increase to the greatest possible amount or degree or to achieve the highest possible outcome in a given situation.

Total Benefits

Total benefits refer to the complete range of economic, social, and personal advantages gained from an action or an investment.