Raul is starting a new desktop-publishing business. He needs to communicate frequently with his clients to get approval for the work he is creating for them. He will use the decision-making process to help him figure out the best telecommunications technology to use to exchange information with his clients. Match the steps of the process to Raul's analysis.

1. Gather data.
Fax machines are able to transmit copies of documents to other locations. E-mail can be used to send documents to clients.
2. Determine the goals.
His clients all have access to e-mail, but not all have fax machines.
3. Analyze choices.
He needs a way to quickly exchange information with his customers. He needs to send them his designs and provide a way for them to get back to him with their approval and/or comments.
4. Evaluate the decision.
Raul will send sample documents to his clients using e-mail.
5. Make the decision.
Raul will survey his clients to determine how the approval process is working for them.

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?