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:
“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)
“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)
“Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off.”
—Franklin D. Roosevelt (1882–1945)