Question 1. Suppose that the fixed costs for a firm is the automobile industry 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 the automobile market, or specifically P = 17, 000 + 150 n , where n represents the number of firms in the market. Assume that the initial size of the US and the European automobile markets are 300 million and 533 million, respectively. a. Calculate the long run equilibrium number of firms in the U.S. and the European automobile markets without trade. Make sure to show your work and explain all your calculations. 2 b. What is the long run equilibrium price of the automobiles in the U.S. and Europe if the automobile industry is closed to foreign trade?