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)
“We are compelled by the theory of God’s already achieved perfection to make Him a devil as well as a god, because of the existence of evil. The god of love, if omnipotent and omniscient, must be the god of cancer and epilepsy as well.... Whoever admits that anything living is evil must either believe that God is malignantly capable of creating evil, or else believe that God has made many mistakes in His attempts to make a perfect being.”
—George Bernard Shaw (1856–1950)
“Playing games with agreed upon rules helps children learn to live by rules, establish the delicate balance between competition and cooperation, between fair play and justice and exploitation and abuse of these for personal gain. It helps them learn to manage the warmth of winning and the hurt of losing; it helps them to believe that there will be another chance to win the next time.”
—James P. Comer (20th century)