0
$\begingroup$

On the Saylor website's course on economics, there is the following sentence, which I do not understand.

"In a simple market under perfect competition, equilibrium occurs at a quantity and price where the marginal cost of attracting one more unit from one supplier is equal to the highest price that will attract the purchase of one more unit from a buyer."

Can someone please explain this more clearly, perhaps using an example? I would really appreciate it.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.