Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are 50 and that variable costs are equal to 20 per finished automobile. Because more firms increase competition in the market, the market price falls as more firms enter and automobile market, or specifically, P-20 + (1/2n) , where "n" represents the number of firms in a market. Assume that the initial size of the US and the European automobile markets are 900 and 1,600 people, respectively. a. Calculate the equilibrium number of firms in the US and European automobile markets without trade. Explain. b. What is the equilibrium price of automobiles in the US and Europe if the automobile industry is closed to foreign trade? Explain. c. Now suppose that the US decides on free trade in automobiles with Europe. How many automobile fırms will there be in the US and in Europe combined? What will be the new equilibrium price of automobiles? Explain. d. Why are prices in the US different with and without trade? Are consumers better off or worse off with trade? In what ways?

Assume the industrial conditions of red pepper production in the market for homogeneous products there are many manufacturers where each manufacturer has a market share (market share) the same, relatively small and can not affect the price of the change strategies carried out by these manufacturers in the market. If it is known that the function the demand is Q = 2000-P, and the total cost of each manufacturer is the same that is, TCi = 100 + 5q2i. Where Q = [2]I qi, where i is the producer of i and i is 1, 2, 3,..., n. Questions: - What is the number of companies in the long term of the competitive marketi perfect for this homogeneous product, where every company has the same market share? - What is the selling price of thi product in market? - Calculate the Herfindahl-Hirschman Index (HHI) of the red pepper producer industry here!

You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs of chocolate daily at lowest possible cost. Mathematically, you have: Q1 = Quantity produced at Chocolate Factory #1 Q2 = Quantity produced at Chocolate Factory #2 Daily total overall production: Q1 – Q2 = 420 At present, each factory produces half the overall requirement. This means that Q1 = 210, Q2 = 210   a)  Following your logic , you realize that as long as the marginal cost is different between the two factories, you can lower overall cost while maintaining production at 420 kgs. So, to reduce the overall cost to the lowest possible, you decide to move more than 1 kilogram from one factory to another. As a result, each factory will produce a different quantity of chocolate while the overall daily production remains at 420 kgs. To minimize overall cost, how many kilograms will you order/instruct Factory #1 to produce? Q1 = ____________kgs And how many kilograms would you…

The Energy Information Administration's forecast that world crude oil demand will likely outpace supply by 20 million barrels this year has also increased market uncertainty and driven up prices. Companies in the US steel and alumina industries have been urging the loosening of import restrictions because they fear running short of petrol. Despite the potential market effects, analysts believe that most steel and alumina companies won't be significantly impacted because crude oil only accounts for a small fraction of their overall costs. In general, rising crude oil prices are the result of a mix of supply and demand issues, market uncertainty, and other reasons. The price of this significant commodity will undoubtedly continue to be significantly influenced by global supply and demand dynamics, even though the precise trajectory of prices in the future is difficult to forecast.  1) Draw a graph to show this information.