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 hasnt 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 dogs bark in every sound.”
—Anton Pavlovich Chekhov (18601904)
“But to each thought and thing allied,
Is perfect Natures every part,
Rooted in the mighty Heart.”
—Ralph Waldo Emerson (18031882)
“Wearing overalls on weekdays, painting somebody elses house to earn money? Youre working class. Wearing overalls at weekends, painting your own house to save money? Youre middle class.”
—Lawrence Sutton, British prizewinner in competition in Sunday Correspondent (London)