(1/800)(P-V)), where S is industry output, n number of firms, P price of this firm, and V average price of competing firms. (Hint: each firm's marginal revenue function is MR = P - (800Q/S).) Note: show the key steps in your work. a. Home's market size is 4,900. Find the equilibrium in the Home market: what will be each firm's output, price, and number of firms? b. Foreign's market size is 57,600. Find the equilibrium in the Foreign market: what will be each firm's output, price, and number of firms? c. Suppose Home and Foreign integrate their laptop markets. Find the equilibrium in the integrated market: what will be each firm's output, price, and number of firms? d. Intuitively, why does market integration allow both countries to be better off?

(1/800)(P-V)), where S is industry output, n number of firms, P price of this firm, and V average price of competing firms. (Hint: each firm's marginal revenue function is MR = P - (800Q/S).) Note: show the key steps in your work. a. Home's market size is 4,900. Find the equilibrium in the Home market: what will be each firm's output, price, and number of firms? b. Foreign's market size is 57,600. Find the equilibrium in the Foreign market: what will be each firm's output, price, and number of firms? c. Suppose Home and Foreign integrate their laptop markets. Find the equilibrium in the integrated market: what will be each firm's output, price, and number of firms? d. Intuitively, why does market integration allow both countries to be better off?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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