3. Suppose that fixed cost (start-up costs for the factory & equipment) for a firm in the automobile industry is $50 billion and variable costs are equal to $20,000 per vehicle. Since more firms increase competition in the market, the market price falls as more firms enter the industry in the following way: P= 20,000 +(_ 15,000 n ) where n is the number of firms. Assume that the market in the U.S. is 53.3 million cars, and in Europe it is 30 million cars (over the expected lifetime of the factory). Calculate the number of automobile firms in equilibrium if a) the markets are separate, and b) the markets are integrated through trade(total market size becomes 83.3 million). What will the price of cars be in each country before and after trade