Explain in detail how purely competitive markets, in the long-run, know how to adjust to and provide the correct output, at the correct price. Give an example of a good or service you might buy that is closest to being in a purely competitive market. Explain your logic.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 10WNG
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  1. Explain in detail how purely competitive markets, in the long-run, know how to adjust to and provide the correct output, at the correct price.
  2. Give an example of a good or service you might buy that is closest to being in a purely competitive market. Explain your logic. 
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