The Significance of Equilibrium Pricing
In a perfectly competitive market at equilibrium, the price of the last unit sold is equal to both the producer's marginal cost and the consumer's willingness to pay for that unit. Explain the significance of this three-way equality. Specifically, analyze why a situation where price is not equal to both marginal cost and willingness to pay for the final unit would not represent a stable market equilibrium.
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Introduction to Microeconomics Course
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Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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