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What is short run equilibrium?
Simply put, short-run market equilibrium in a perfectly competitive market can be defined as the quantity and price of output where:
- The supply is equal to the demand
- The demand gets obtained from the maximization of utility
- The supply gets obtained from the firms selecting diverse outputs and inputs in order to maximize the profits
Why is short-run equilibrium important?
Unlike the long-run, in the short run any unforeseen or sudden reduction in the aggregate demand will result in an extra supply of resources that in turn will result in a reduction of resource prices. This will increase unemployment and both the price and output will go down. Hence, understanding the short-run equilibrium is essential to describe the perfect market supply curve and a firm’s supply curve in such a condition. myhomeworkhelp.com, Short-Run Equilibrium Assignment Help service helps you gain a basic knowledge of the subject. All the mathematical equations and market supply curves are presented accurately, that helps you score a Grade A. In terms of price, we don’t charge you an exorbitant amount. To avail our service you have to pay a standard nominal rate, that is reasonable.
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