Title

(6) The Competitive Market Adjustment Process

Topic Category

Perfect Competition

Publication Date

2011

Keywords

Competitive Market Adjustment, Adjustment to the Long Run, Resource Reallocation

Abstract

This explains the story of how competitive markets adjust in response to profit and loss signals. It uses graphs to illustrate this process, and how in the long run a zero profit outcome is achieved.

Run Time

4:26

Primary Discipline

Microeconomics

Skills Delivered

Ability to explain the competitive market adjustment process. Ability to illustrate this process using a collection of graphs. Ability to identify and explain the Long Run Equilibrium Situation that emerges from this adjustment process.

Rigor Level

2000

Prerequisites

Previous Perfect Competition and Short Run Cost Videos

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