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Define Price

What do you understand by the term Price (P) at Market in Economy?

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Price (P): At a particular moment of time the market price is the dollar amount which will be paid in the market for one unit of product.  Each and every unit sold will be sold at this price despite of which firm sold it, or who buy it.  In real world, the firm’s price in competitive market is established by the market demand and supply for product. All purely competitive firms “takes”, or accepts, the price which is established by the market, or industry, and then selects the quantity it will propose for sale so as to maximize net economic gains or minimize net economic losses. 

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