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countries, Home and Foreign, whose is SH = 900.000 and SF = 1.600.000. d curve of the industry i is n- 30000 (Pi – P-) | al cost function is CT = 750,000,000 + Derive the equilbrium price in the long number of varieties in the long run at at Foreign in AUTARKY. (b) Derive the price in the long run and the number of the long run at Home and at Foreign in E. (c) Compare (a) y (b) and show that ries are better off with free trade.

countries, Home and Foreign, whose is SH = 900.000 and SF = 1.600.000. d curve of the industry i is n- 30000 (Pi – P-) | al cost function is CT = 750,000,000 + Derive the equilbrium price in the long number of varieties in the long run at at Foreign in AUTARKY. (b) Derive the price in the long run and the number of the long run at Home and at Foreign in E. (c) Compare (a) y (b) and show that ries are better off with free trade.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider 2 countries, Home and Foreign, whose market size is SH = 900.000 and SF = 1.600.000. The demand curve of the industry i is Qi = S (1 /n- 30000 (Pi – P-) And the total cost function is CT = 750,000,000 + 5,000Q(a) Derive the equilbrium price in the long run and the number of varieties in the long run at Home and at Foreign in AUTARKY. (b) Derive the equilbrium price in the long run and the number of varieties in the long run at Home and at Foreign in FREE TRADE. (c) Compare (a) y (b) and show that both countries are better off with free trade.
Transcribed Image Text:Consider 2 countries, Home and Foreign, whose market size is SH = 900.000 and SF = 1.600.000. The demand curve of the industry i is Qi = S (1 /n- 30000 (Pi – P-) And the total cost function is CT = 750,000,000 + 5,000Q(a) Derive the equilbrium price in the long run and the number of varieties in the long run at Home and at Foreign in AUTARKY. (b) Derive the equilbrium price in the long run and the number of varieties in the long run at Home and at Foreign in FREE TRADE. (c) Compare (a) y (b) and show that both countries are better off with free trade.
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