Question

Please answer very detailed and clear it needs to be a page long

l T-Mobile Wi-Fi @ 100%C0.+ 8:07 AM Post-Class: Team Report #1 straig tools 1 help desk As part of the post-class team Detail Submission Grade report, discuss the following points. 1. In business, we assume a goal of a firm is to maximize profit. So, why is there so much discussion of break-even analysis? Is breaking-even a worthwhile goal of a business? 2. In economics, there is much discussion of market equilibrium. Does the price of a good also lead to a situation where quantity demanded is equal to quantity supplied? If not, how does the market reach an equilibrium. Submission Instructions Dashboard Calendar To Do Notifications Inbox

Answer 1

1.Let me first discuss what is a break even point, so it is the point at which total cost and total revenue are equal. It is a situation of neither profit nor loss. Now lets discuss the importance of analyzing a break Even Point, so we can consider it as a critical step so as to know how much sales volume would be required to cover the cost, e.g these days it is really crucial for the startup to know their initial sales goals. Ascertaining the Break even is not the ultimate goal but yes it matters, it's the easiest method for any business to know if what it charges for its products/ services will cover what it costs to make or provide those products/services.

2. Market Equilibrium is a situation when Market demand is equal to Market Supply. In case the price is above the equilibrium price, there will be excess supply and thus downward pressure on the price since the suppliers will reduce their production and so does their prices so as to meet the demand until the Market equilibrium is reached. Same situation can happen when Market Price is lesser than the equilibrium price, there will be excess demand , hence upward pressure on price, so as to meet the supply. Thus we can see that Prices do lead to situation where quantity demanded is equal to quantity supplied.