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The equilibrium in the business means that the company's after tax profit is at satisfactory level, rate of non performance assets is low, adequate depreciation has been provided for all assets of the company. Over and above, there is huge prospect for future growth of the company.

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11y ago

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Why do prices move towards equilibrium in a free market?

Because if a business is profitable, competitors will spring up, thus clustering prices towards the equilibrium. Conversely, if it is not profitable, then prices will move toward the point at which it is, or the business will exit the market.


A shortage will develop when?

The market price is below the equilibrium price.


What has the author John Dagsvik written?

John Dagsvik has written: 'Was the great Depression a low-level equilibrium?' -- subject(s): Business cycles, Depressions, Equilibrium (Economics), Mathematical models


If an unintended increase in business inventories occurs at some level of GDP then GDP?

is too high for equilibrium


What economic situation exists when a business is able to sell exactly as many products as it is able to produce?

Economic equilibrium!


Is internal equilibrium from quasi equilibrium?

No, internal equilibrium is not the same as quasi equilibrium. Internal equilibrium refers to a system being in a state where there is no net change in composition, while quasi equilibrium refers to a process that occurs almost at equilibrium, but not necessarily at the exact equilibrium point.


If there are no profits in competitive equilibrium why do firms produce how can they stay in business?

why do firm stay in business if profit is=0In economic profit is revenue minus all costs,including implicit costs,like the opportunity cost of the owner's time and money.In the zero profit equilibrium,firms earn enough revenue to cover these costs.by Abdul hanan tareen


What did Joseph Schumpeter say disturbs equilibrium and creates fluctuations in the business cycle?

Schumpeter concluded that what most people consider "progress" is at the source of the problem. He believed that as entrepreneurs come up with new ways of doing things, this disturbs the equilibrium and creates fluctuations.


What has the author Fischer Black written?

Fischer Black has written: 'Exploring general equilibrium' -- subject(s): Business cycles, Businesscycles, Equilibrium (Economics) 'Mean reversion and consumption smoothing' -- subject(s): Econometric models, Prices, Consumption (Economics), Risk


What is equilibrium conversion how does it effect design of reactor?

equilibrium conversion is that which is at equilibrium concentration


What are the two types of equilibrium and how are they different?

The two types of equilibrium are static equilibrium and dynamic equilibrium. Static equilibrium is when an object is at rest, while dynamic equilibrium is when an object is moving at a constant velocity with no acceleration. Static equilibrium involves balanced forces in all directions, while dynamic equilibrium involves balanced forces with movement.


What is used to describe the conditions of a reaction to equilibrium?

An equilibrium constant

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