explain how price is determined in a perfect competitive market with a fixed no. of firms
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When the number of firms in a perfectly competitive market is fixed, the firms are operating in the short-run. The equilibrium price is determined by the intersection of market demand curve and supply curve. ... This will increase the price to Rs 8 (equilibrium price), where the market will reach the equilibrium.
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When the number of firms in a perfectly competitive market is fixed, the firms are operating in the short-run. The equilibrium price is determined by the intersection of market demand curve and supply curve. ... This will increase the price to Rs 8 (equilibrium price), where the market will reach the equilibrium.
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