Economic profit is to firm behavior as market equilibrium is to ?

Economic profit is a measure of how much money a firm makes after covering all its costs, including opportunity costs. Just like economic profit influences how a firm behaves—encouraging it to expand or reduce production depending on profitability—market equilibrium is about how supply and demand interact to determine prices and quantities in a market. When supply equals demand, the market is in equilibrium, meaning there are no shortages or surpluses. For example, if a popular toy is priced just right, every toy made is sold, and companies know they should keep producing at that level. In this way, both economic profit and market equilibrium guide decisions in their respective areas: firms adjust production based on profits, while prices adjust based on supply and demand.