Suppose minivans are produced in four countries, the United States, Japan, Germany, and South Korea. The market for minivans in each country is monopolistically competitive. The demand curve faced by any given firm is described by the following equation: Q = 5 7 P - P 25,000 where Q is the quantity of minivans sold by one firm, S is the total quantity of minivans sold, n is the number of firms in the industry, Pis the price charged by the firm, and p is the average price charged by other firms. Total industry sales are unaffected by the average price charged by firms in the industry. All firms are symmetric; that is, the demand function and cost function are identical for all firms. The fixed cost of producing minivans is $2.4 billion per year, and the marginal cost is constant at $16,000. Question 1 Suppose Japanese producers sell minivans only in the domestic market, where the demand is 1.3 million minivans a year. What is the long-run equilibrium number of Japanese firms producing minivans? What is the price of a minivan? What is its average cost? Question 2 Suppose now that minivans are traded freely in the world market, where the demand is 9.6 million minivans a year. What is the long-run equilibrium number of minivan producers in the world market? What is the price of a minivan in Japan? What is its average cost? How does international trade affect the variety of minivans available to consumers? Question 3 Is international trade in these settings driven by comparative advantage? Resource endowments? Something else? Explain