What Is Competitive Market Equilibrium?
Competitive equilibrium refers to the equilibrium state achieved in a competitive market, that is, the state of market clearance where the supply and demand are equal during the operation of the equilibrium market. It is necessary to explain the definition of competitive market. The so-called competitive markets, Competitive Markets, refer to markets where buyers and sellers have little or no personal influence on prices.
Competitive equilibrium
Right!
- Chinese name
- Competitive equilibrium
- Foreign name
- Competitive equilibrium
- Brief introduction
- Refers to the equilibrium reached in a competitive market
- Involved Disciplines
- economics
- Competitive equilibrium refers to the equilibrium state achieved in a competitive market, that is, the state of market clearance where the supply and demand are equal during the operation of the equilibrium market. It is necessary to explain the definition of competitive market. The so-called competitive markets, Competitive Markets, refer to markets where buyers and sellers have little or no personal influence on prices.
- According to "Microeconomics" edited by Pindick and Rubinfeld, equilibrium is a set of equilibrium in which the quantity of each market demand equals the quantity of supply. This is also a competitive equilibrium. Because all suppliers and demanders are receivers of price. [1]
- In addition, the second theorem of welfare economics uses the important concept of competitive equilibrium. If individual preferences are convex (negative slope), then each efficient configuration (every point on the contract curve) is a competitive equilibrium for the initial position of some commodities.