Question

With the aid of graphs,explain how the price in a perfect market is determined

Answer 1

Answer:

In perfect competition the firms and sellers are price takers. The price inperfect competition is determined bymarket forces which is demand and supply. ... Here mc is the marginal costof a firm and ac is its average cost. The demand line is equal to marginal revenue and mr is equal to price.

Answer 2

$\huge\tt\red{Answer}$

.In a perfectly competitive market, equilibrium price is determined by the forces of market demand and market supply.Market demand refers to the sum total of demand for a commodity by all the buyers in the market.