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Multi-cone equilibrium |
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Multi-cone equilibriumA free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.Similar MatchesEquilibriumEquilibriumThe stable state of the system. See: Attractor. EquilibriumEquilibrium1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand. General equilibriumGeneral equilibriumEquality of supply and demand in all markets of an economy simultaneously. The number of markets does not have to be large. The simplest Ricardian model has markets only for two goods and one factor, labor, but this is a general equilibrium model. Contrasts with partial equilibrium. Equilibrium positionEquilibrium positionSame as equilibrium level, though perhaps of several variables at once, perhaps as displayed in a graph. Partial equilibriumPartial equilibriumEquality of supply and demand in only a subset of an economy's markets -- usually just one -- taking variables from other markets as given. Partial equilibrium models are appropriate for products that constitute only a negligibly small part of the economy. They are used routinely (not always appropriately) for analysis of trade policies in single industries. Contrasts with general equilibrium. Further SuggestionsOne cone equilibriumEquilibrium price Nash equilibrium Two cone equilibrium Equilibrium rate of interest Disequilibrium Balance of payments equilibrium Equilibrium level Computable general equilibrium Equilibrium exchange rate Market equilibrium |
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