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:
“When a person hasn’t in him that which is higher and stronger than all external influences, it is enough for him to catch a good cold in order to lose his equilibrium and begin to see an owl in every bird, to hear a dog’s bark in every sound.”
—Anton Pavlovich Chekhov (1860–1904)
“till disproportion’d sin
Jarr’d against natures chime, and with harsh din
Broke the fair musick that all creatures made
To their great Lord, whose love their motion sway’d
In perfect Diapason, whilst they stood
In first obedience, and their state of good.”
—John Milton (1608–1674)
“The praise of ancient authors proceeds not from the reverence of the dead, but from the competition and mutual envy of the living.”
—Thomas Hobbes (1588–1679)