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Market equilibrium is real

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Discuss if you agree or disagree with this statement and explain your position: Market equilibrium (price and quantity of equilibrium) is just a theoretical result. The real market equilibrium is different most of the time. So, firms should never use models to make production decisions.

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Market equilibrium is real as supported by the views from Prenhall (2010), Estrada (2009), and Economics Junkie (2011).

Market equilibrium is not a theoretical concept but represents what is really happening in the real world. With the advances today in calculus, economists can use ...

Solution Summary

Market equilibrium is a realistic model. The expert discuses if they agree or disagree with the statement and explains their position.