Different between a Market price and Normal price
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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.
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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.
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| Market price and Normal price in market |
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Market
price always is affected by abnormal activity which takes place in market.
Normal price will be affected by normal activity.
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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)
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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.
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Market
price is a real price which we have in the market at a point of time. Normal
price is an artificial price.
