An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit and a selling price of $ 7.45 per unit. fixed costs are $ 15 comma 000. current volume is 30 comma 000 units. the firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $ 5 comma 600. variable cost would increase to $ 0.60 and the selling price would be revised to $ 7.55 with the expectation that the volume would be 50 comma 000 units as a result of a higher-quality product.

Reagan corporation is a wholesale distributor of truck replacement parts. initial amounts taken from reagan's records are as follows:

Ellen and george work for the same company. ellen, a gen xer, really appreciates the flextime opportunities, while george, a baby boomer, takes advantage of the free computer training offered at the company. these policies are examples of

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. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?