Equilibrium is a point where there is no Profit and where there is no loss, Equilibrium price has been adopted by companies and entities in recent times as a point of intersection, in real it simple means where this point intersect, you are not making any profits and you are not making any loss but as a business minded person this point means loss.
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Because, the real motivator in business is profits, I know business is the life wire of a Nation but that life wire there is all about financeing. Finance is an important part and parcel of business, finance is used in every area of business, As humans body needs blood, so does businesses needs financing.
Moreover, when we make big sales in business, our profits levels will increase, consumption rate Increase and the expenses In turn will increase, now if we are to consider loss, spending more on goods and services than expected brought us to the concept of loss.
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Every business man, should vividly consider loss as an integral part of it operations also, without loss there is no opportunity and any business person would not think ahead of what to do and how to tackle the his business operations In order to either make more gains or at least balance and maintain an appropriate price index.
Thereafter, it is only when it comes to this extents that you as a business man consider equilibrium, instead of backing out of the business you better have a balance point, at this point you have to rest and have a solution to how to go higher than what you make.
Loss is very bad in business, that is why at a point you easily hear peoples saying that a particular company or organisation is no More in business, why? It is as a result loss being their primary aims instead of making Profit or at least having a balance.
Equilibrium is a nice mechanism but should not be used when not necessary.
