Question

The equilibrium price in a perfectly competitive industry is sometimes below the​ break-even price, sometimes above​ it, and sometimes equal to it because the ____

(A) firm is a price maker and the equilibrium price is determined in the competitive market.
(B) equilibrium price is determined by the number of buyers in the market.
(C) equilibrium price is determined by the number of firms in the market.
(D) firm is a price taker and the equilibrium price is determined in the competitive market.

Answer 1

The answer is: (B) the equilibrium price is determined by the number of buyers in the market.

Explanation: At the equilibrium price, the quantity that buyers want to acquire is equal to what the sellers want to sell. The market reaches equilibrium at the price with which the quantity demanded is equal to that offered.

Market value is the value of a good, product or service, determined by the supply and demand of the market at a given time.

The answer is: (B) the equilibrium price is determined by the number of buyers in the market.