Equilibrium Essay Examples

Problem 2

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equilibrium in which the MMs’ strategy is to not acquire information (pn = 0 for n = 1, 2). Argue that in this case, bn = 1/2 in equilibrium. Lack of value information implies that both players are bound to make a bid that is defined by the expectation of the market. In essence, the prospect of attaining bn-V would remain equally distributed among the two market markers. Arguably, the attribute of the trader stands dismissed along the implication of noise. Considering the input of the two market markers, n1 and n2, their ability to achieve bn when the value is unknown would be split evenly MMn1 = bn – V MMn2 = bn – V But V = 0 (since v is undisclosed) Thus, gains from bid would equate to...

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KA

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equilibrium is established at E2. Agraph of demand and supply The firms will only make normal profits as marginal costs will equal average costs. Therefore, firms will either leave or operate under the prevailing conditions. The long-run profit of a perfectly competit Alternatives for the Business The Fetchy Trend company (FT) will need to re-organize its strategies to lower average costs for its survival or else it will exit the market((Samuelson & Marks 222).The alternative available for the business includes: Adopt a new, superior technology FT company will be needed to adopt a more superior technology that will translate to the reduced average costs and...

equilibrium of a market arises when the quantity of goods supplied in the market is equal to the quantity demanded. A market is pushed towards its equality by a shortage and a surplus in quantity of goods involved. 8. When the price of compliments is increased, the demand for the products decreases (Carbaugh 2007). Thus an increase in the price of the beer results in a decrease in a decrease in demand of pizza. In the long run, the quantity and prices of pizza supplied would fall resulting in a leftward shift in demand curve 9. Prices determine the market equilibrium and also signal a shortage or surplus in quantity supplied or demanded. Chapter 6: pg. 129. Essentials of Economics /Seventh...

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Osmosis

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equilibrium as well as equal distribution of solution s on each membrane. 3. The percentage mass was used to get a good comparison as mass difference alone could not reflect a better pattern. 4. The percentage change in mass= (Initial mass-Final mass) / Initial mass x 100 = (18-20)/18 x 100 = -10% change in mass 5. The sucrose solution in the beaker would have been hypertonic to the water solution. The experiment supported the hypothesis. Potatoes from hypertonic solution shrunk, while those from hypotonic solution swelled. The graph also shows that there was a potato strip that behaved like it was in an isotonic solution. Reference Chen, L. Y., Wu, L. P.,...

equilibrium composition of a chemically reacting system …relating to biochemical processing, safety, and the distribution of chemicals in the …” Silberberg, Martin 1125 ). Notes Pressure is said to be inversely proportional to volume, since when the balloon did not have air inside ,it was deflated. The amount of reactants must be equal to the amount of products and that’s why increasing a reactant results to an increase in the product. Stoichiometry of chemical equations involve reacting mole ratios and thus changing the amount a reactant interferes with the reacting mole ratios. Work cited Silberberg,...

equilibrium condition. Although acid catalysis increases the rate of attaining equilibrium but it does not affect the position of the equilibrium. For shifting the equilibrium reaction to the right (that is to favor the formation of the desired ester) two strategies are usually deployed. Firstly, large amounts of alcohol may be added to shift the equilibrium towards right. Secondly, removing products (that is water or the desired ester) of the esterification reaction. The first process is usually deployed when the alcohol is relatively cheap. The process of shifting the equilibrium of the etherification reaction to the right (by using excess alcohol) is known as Fischer’s Esterification....

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