) Assuming cost and demand relationships are the same for all firms regardless of location determine the number of firms in the home country, N, and the foreign country N in the absence of trade. Let total demand in the home country, Q, be 100,000 x (A + B) and in the foreign country, Q", be 100,000 x (C + D). Let c = 1000 x YA), let f= 10,000,000 x (B) and let z = 1/(1,000 x (C)). (Example; If your ID number is 0678031 then Q = 1,300,000 and Q* = 1,100,000, marginal cost c = 6,000, fixed cost f = 70,000,000, and the parameter z = 1/8,000) 6 = 102,000 x (A+ B)= 100, 000 ( 9+ 5) = 100,000 ( 14) = 1, 400,000 the 2* = 100, 00 0 * ( C+D) = 100, 000 ( 8+5) = 100,000( 13 ) = 1, 300, 000 EAI C = 1000 X ( A) = 1000 * 9 = 9000, f = 10, 000, 000 * ( BJ = 10, 000, 060* 5 = 50, 000, 000 2= 1/ (1,000 KL) = 1/(1000x 8) = 5000