Please help me with 1. Thank you Question 1Suppose that the demand facing firms producing Golf clubs in Home and Foreign is given asfollows.= S-The cost of producing Golf clubs is given byb)c)=TC(Qi)=F+C*Qi, Assume that the parameters for Home are as follows. SH = 1440, b = 2, F=5, C1. Compute the equilibrium values of n, P, and Q. {Hint: either derive the expressionfor marginal revenue from the demand curve above or use the expression for marginalrevenue from the text}--/Assume that the parameters for Foreign are as follows. SF = 250, b = 2, F = 5,C=1. Compute the equilibrium values of n, P, and Q for ForeignNow suppose that Home and Foreign trade freely in Golf clubs. What are theequilibrium values of n, P, and Q in the integrated economy? Is trade welfare improvingfor consumers in both countries? Justify your answer.

1.aUsing the marginal revenue equation from the demand curve, we can determine the equilibrium…

Answered: Question 1 Suppose that the demand…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.2: Internalizing Externalities

Problem 2ST

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