In a competitive market, what does the adjustment process move towards?

Question

In a competitive market, what does the adjustment process move towards?

Answer 1

It moves towards equilibrium.

Another option - it could move away from perfect competition.

Answer 2

Towards an equilibrium in which p=mc.  If the price is above that, firms will enter to cause the price to fall.  Entry will persist until p=mc.  If the price is below equilibrium, exit will occur and this will cause price to rise until the point where p=mc.  Entry and exit force the price to equal marginal cost.