Suppose the two countries we considered in the numerical example in the text were to integrate their automobile market with a third country with an annual market for 3,750,000 automobiles. Find the number of firms, the ou per firm, and the price per automobile in the new integrated market after trade. You are given the following information: The total sales (S) in the industry after integration are 6,250,000 automobiles per year. 30,000 xQ The marginal revenue curve facing any one producer is described by the equation MR = P- Each producer has the following costs: fixed costs (F) of $750,000,000 and a constant marginal cost (c) of $5,000. In equilibrium, the number of firms will be (Round your answer down to the nearest integer.) Help! The equilibrium price will be $ (Enter your answer to the nearest dollar.) The equilibrium output per firm is (Round your answer to the nearest integer.)

Suppose the two countries we considered in the numerical example in the text were to integrate their automobile market with a third country with an annual market for 3,750,000 automobiles. Find the number of firms, the ou per firm, and the price per automobile in the new integrated market after trade. You are given the following information: The total sales (S) in the industry after integration are 6,250,000 automobiles per year. 30,000 xQ The marginal revenue curve facing any one producer is described by the equation MR = P- Each producer has the following costs: fixed costs (F) of $750,000,000 and a constant marginal cost (c) of $5,000. In equilibrium, the number of firms will be (Round your answer down to the nearest integer.) Help! The equilibrium price will be $ (Enter your answer to the nearest dollar.) The equilibrium output per firm is (Round your answer to the nearest integer.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.3P

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