Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. Because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, where n represents the number of firms in a market. Assume that the initial size of the U.S. and the European automobile markets are 300 million and 533 million people, respectively. a. Calculate the equilibrium number of firms in the U.S. and European automobile markets without trade. b. What is the equilibrium price of automobiles in the United States and Europe if the automobile industry is closed to foreign trade? c. Now suppose that the United States decides on free trade in automobiles with Europe. The trade agreement with the Europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the United States. Howmany automobile firms will there be in the United States and Europe combined? What will be the new equilibrium price of automobiles?
第1题
A.Algol A and Algol B had the most similar compositions.
B.Algol A and Algol C had the most similar compositions.
C.Algol B and Algol C had the most similar compositions.
D.Algol A, Algol B, and Algol C had the same composition.
第2题
第3题
A.Japan will begin to import television sets from the U.S.
B.the exchange value of the yen will depreciate
C.the exchange value of the yen will appreciate
D.the exchange value of the dollar will appreciate
第4题
A.buy a futures contract on the underlying asset
B.sell a futures contract on the underlying asset
C.buy a put option on the underlying asset
D.both A and C could be profitable
第5题
A.buy a futures contract on the underlying asset
B.sell a futures contract on the underlying asset
C.buy a call option on the underlying asset
D.both B and C could be profitable
第6题
A.Startwith$350.Buy10ouncesofgoldwithdollarsat$35perounc
E.Convertthegoldto£200at£20perounc
E.Exchangethe£200fordollarsatthecurrentrateof$1.80perpoundtoget$360.
B.Startwith$350.Exchangethedollarsforpoundsatthecurrentrateof$1.80perpoun
D.Buygoldwithpoundsat£20perounc
E.Convertthegoldtodollarsat$35perounce
C.A.andB.bothwork
D.noneoftheabove
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