Price and Output Determination | Economics
The equilibrium conditions of an individual firm under perfect competition are to be studied under two heads. They are: 1. Short-Run Equilibrium 2. Long-Run Equilibrium. 1. Short-Run Equilibrium: A short period has two major characteristics: (a) Fixed production scale: In the short period a firm cannot change its scale of production. It has to increase its supply by utilising fully [...]