The price-quantity combination that will prevail in a perfectly competitive market in the short run is called short-run equilibrium.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the short-run equilibrium occurs at the point where the market demand curve intersects with the supply curve, and it determines the price and quantity that will prevail. Therefore, the statement is true.

The Price-Quantity Combination That Will Prevail in a Perfectly Competitive