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Suppose symmetric firms in Industry N exhibit economies of scale in production with the following cost and demand function, C =$500,000,000 + $1,000 x (Total
Suppose symmetric firms in Industry N exhibit economies of scale in production with the following cost and demand function, C =$500,000,000 + $1,000 x (Total industry sales / Number of firms) P = (1,000 / Number of firms ) + $1000 The industry sales of Country E is $2,000,000 a. Compute the equilibrium number of firms and price in Industry N in Country E in the long run. b. Suppose that Country F has a market of industry sales of $2,500,000. Explain how consumers of Country E can benefit from a free trade with Country F. c. Explain how producers in Industry N in Country E are affected
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