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The Theory Of The Firm Under Perfect Competition
Question
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 In case of excess demand, equilibrium price is less then prevailing market price.

Answer

False; because excess demand occurs when market price is less than equilibrium price.

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Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

 Define perfect competition.

 Is the seller under perfect competition a price maker or a price taker? 

Define monopoly.  

Define market equilibrium. 

Can a seller under monopolistic competition influence the price?

Why under imperfect competition, MR is less than price?