Perfect Competition - Equilibrium in Perfect Competition

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.

Read more about this topic:  Perfect Competition

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)

    Indiana was really, I suppose, a Democratic State. It has always been put down in the book as a state that might be carried by a close and careful and perfect organization and a great deal of—[from audience: “soap”Ma reference to purchased votes, the word being followed by laughter].
    I see reporters here, and therefore I will simply say that everybody showed a great deal of interest in the occasion, and distributed tracts and political documents all through the country.
    Chester A. Arthur (1829–1886)

    Every sect is a moral check on its neighbour. Competition is as wholesome in religion as in commerce.
    Walter Savage Landor (1775–1864)