(6) The Competitive Market Adjustment Process
Competitive Market Adjustment, Adjustment to the Long Run, Resource Reallocation
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.
Crane, Steven E., "(6) The Competitive Market Adjustment Process" (2011). Principles of Microeconomics. 37.
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.
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