Suppose that fixed costs for a firm in the computer industry (start-up costs of factories, capital equipment, and so on) are $1,000,000 and that marginal costs are equal to $5,000 per finished computer. Suppose the price is defined with the following equation: P = 5,000 + (144/n), where n represents the number of firms in a market. Assume that the initial size of the U.S. and the EU computer markets are 250,000 and 444,444 people, respectively.
What is the equilibrium number of firms in the US when there is NO trade? (Just write the number)
What is the equilibrium number of firms in the EU when there is NO trade? (Just write the number)
What is the output per firm in the USA when there is NO trade? (just write the number (round up), no decimals, no comas, no dots)
What is the output per firm in the EU when there is NO trade? (just write the number (round down), no decimals, no comas, no dots)
What is the equilibrium price of computers in the United States if the computer industry is closed to foreign trade? (just write the number, no decimals, no comas, no dots)