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)
“Your good mother tells me you are feeling very badly in your new situation. Allow me to assure you it is a perfect certainty that you will, very soon, feel better—quite happy—if you only stick to the resolution you have taken to procure a military education. I am older than you, have felt badly myself, and know, what I tell you is true. Adhere to your purpose and you will soon feel as well as you ever did.”
—Abraham Lincoln (1809–1865)
“Every sect is a moral check on its neighbour. Competition is as wholesome in religion as in commerce.”
—Walter Savage Landor (1775–1864)