Hi

Can anyone help me reply to these two in economic terms?

1/

Market Equilibrium. When the market is at its equilibrium price and quantity, everyone is happy. There are no shortages or surpluses, and everyone is content paying the market price. Both the buyers and the sellers benefit from having the market equilibrium because sellers are selling the exact amount they want to at that price, and then buyers have exactly how much quantity they are demanding. Also, find it extremely interesting that if there is a shortage or surplus, the market always works itself to get back to the equilibrium point

2/

Rational Rule for Sellers in competitive markets was interesting because we can apply this to any decision that involves selling. This rule sets us up to be able to sell one more product if the price is greater than or equal to the marginal cost, in a perfectly competitive market. It's important here to add any additional variable costs we may have since it gives the actual opportunity cost of expanding production.

This is intriguing, especially to managers because they can maximize their profits, and allows the selling of products until they reach the marginal costs. This rule can also showcase the bad managers and weed them out from competitive markets. Those who follow this rule will maximize their gains while those that make worse decisions will simply die out.