Economic equilibrium is a state in which market forces are balanced, a concept borrowed from the physical sciences, where observable physical forces can balance each other.
The incentives faced by buyers and sellers in the market, communicated through current prices and quantities, cause them to offer higher or lower prices and quantities that bring the economy closer to equilibrium.
Economic equilibrium is only a theoretical construct. In fact, the market never reaches equilibrium, although it is constantly moving towards equilibrium.
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.
Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
A trade-off between equity and efficiency arises when there is some conflict between maximizing net economic efficiency and achieving other social goals.
External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry.