Abstract
When the competitive firm reaches its profit maximizing level of output, the price of its product is equal to the marginal production cost of its product. As the marketplace fills with such producers, their profit margin tends to zero. When the market is filled, their profit is zero and this addition condition allows us to determine the number of identical competitive firms a given market can sustain.
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© 2012 Springer Science+Business Media, LLC
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Ruth, M., Hannon, B. (2012). Quasi-Competitive Equilibrium. In: Modeling Dynamic Economic Systems. Modeling Dynamic Systems. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-2209-9_14
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DOI: https://doi.org/10.1007/978-1-4614-2209-9_14
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Publisher Name: Springer, Boston, MA
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Online ISBN: 978-1-4614-2209-9
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