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)
“... A La Recherche du Temps Perdu is like a beautiful hand with long fingers reaching out to pluck a perfect fruit, without error, for the accurate eye knows well it is growing just there on the branch, while Ulysses is the fumbling of a horned hand in darkness after a doubted jewel.”
—Rebecca West (1892–1983)
“Every sect is a moral check on its neighbour. Competition is as wholesome in religion as in commerce.”
—Walter Savage Landor (1775–1864)