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:
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—Horace Walpole (1717–1797)
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Hills peep o’er hills, and Alps on Alps arise!
A perfect Judge will read each work of Wit
With the same spirit that its author writ:
Survey the Whole, nor seek slight faults to find
Where nature moves, and rapture warms the mind;”
—Alexander Pope (1688–1744)
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