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.
Recommended Citation
Crane, Steven E., "(6) The Competitive Market Adjustment Process" (2011). Principles of Microeconomics. Paper 37.
http://epublications.marquette.edu/microecon_learning/37
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