The theory is that price will keep falling until cost and all producers will make zero profits. Saying that, we also have to factor opportunity cost into the costs as well.
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The theory is that price will keep falling until cost and all producers will make zero profits. Saying that, we also have to factor opportunity cost into the costs as well.
Market equilibrium is quite difficult to understand, it needs years of practice and experience
In reality, equilibrium is rarely reached because of the constant changes in various independent markets.