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Why Does Market Price Prevail in a Perfectly Competitive Market

question 15

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Why does market price prevail in a perfectly competitive market?


Definitions:

Neutralization Reaction

A chemical reaction in which an acid and a base react to form water and a salt, achieving a balanced pH.

Salt

An ionic compound resulting from the neutralization reaction of an acid and a base, commonly exemplified by sodium chloride.

Water

A clear, flavorless, scentless, and almost colorless substance that forms the primary part of the Earth's hydrosphere and the liquids within most living beings.

Hydrobromic Acid

A strong acid formed by dissolving the diatomic molecule hydrogen bromide (HBr) in water.

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