Equilibrium in Perfect Competition
Equilibrium in perfect competition is the point where market demands will be equal to market supply. A firm's price will be determined at this point. In the short run, equilibrium will be affected by demand. In the long run, both demand and supply of a product will affect the equilibrium in perfect competition. A firm will receive only normal profit in the long run at the equilibrium point.
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Famous quotes containing the words equilibrium, perfect and/or competition:
“They who feel cannot keep their minds in the equilibrium of a pair of scales: fear and hope have no equiponderant weights.”
—Horace Walpole (1717–1797)
“There is no fear in love; but perfect love casteth out fear: because fear hath torment. He that feareth is not made perfect in love.”
—Bible: New Testament 1 John, 4:18.
“All adults who care about a baby will naturally be in competition for that baby.... Each adult wishes that he or she could do each job a bit more skillfully for the infant or small child than the other.”
—T. Berry Brazelton (20th century)