Consider the entry model we discussed in class. Assume that the profit of a firm when there are N active firms in the market is given by i = S iVN(X i) - FN (W i) i where S i is the population of town i, VN(X i) is the per-customer operating profit when N firms are operating in the market, and FN(W i) is the fixed cost, and i is random shock. X i and W i are observable variables that affect the profit and fixed cost, respectively. Now we have estimated parameters in VN and FN, so we can calculate both V N and FN from these parameters and data (X,W). Suppose that follows the standard normal distribution