Different between a Market price and Normal price

Different between a Market price and Normal price

ü  Market price is a price which we see in a short run or few days or for special time. Normal price is a price which we see in a long-run.

ü  Market price always driven by the demand and supply will be stable. Normal price is always driven by supply because in long run supply will be change according to time.

Market price and Normal price in market

ü  Market price always is affected by abnormal activity which takes place in market. Normal price will be affected by normal activity.

ü  Market price will be above or below the average cost so a firm earns abnormal profit or loss. Normal price will be always equal to the lost point of long term average cost(LAC)

ü  Every-thing which is re-produce, recycles or don’t have, has a market price. On the other hand – only reproduce or recycle have a normal price.

ü  Market price is a real price which we have in the market at a point of time. Normal price is an artificial price.