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Looking for help with international trade theory. Assignment 6: The Monopolistic Competition Model (10 points + 1 bonus point) Consider two countries, home (H) and

Looking for help with international trade theory.

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Assignment 6: The Monopolistic Competition Model (10 points + 1 bonus point) Consider two countries, home (H) and foreign (F) with the same technology for producing private jets. Each firm has the cost function: TC = F +cQ. where c = 5 and F = 1200. The demand function faced by each firm is: Q=s[#- b(P- P)] Where b = 1/1200. The home producers sell 900 private jets per year and the foreign producers sell 1600 private jets per year. The marginal revenue function of each firm is: MR = P- Sxb 4. Derive the free trade equilibrium when Home and Foreign enter a free trade agreement. (2 points)

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