Module 60: Long-Run Outcomes in Perfect Competition
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In the Long-Run...
There is entry or exit, zero economic (normal) profit, and the industry is efficient which means no transactions go unexploited (no resources wasted).
Long-Run Market Equilibrium
a situation in which the quantity supplied = the quantity demanded, given enough time to elapse for producers to either enter or exit the industry.
Short-Run Industry Supply Curve
the quantity supplied by an industry depends on the market price, given a fixed number of firms.
Industry Supply Curve
the relationship between the price and the total output of an industry as a whole.
Short-Run Market Equilibrium
when the quantity supplied equals the quantity demanded, taking the number of producers given.