Question: need solutions with work shown please. thankyou. 2 Consider a monopolistic competition model with two countries, Home and Foreign. a Suppose that for the Home

need solutions with work

shown please. thankyou.

2 Consider a monopolistic competition model with two countries, Home and Foreign. a Suppose that for the Home country, we have S=1440,b=2, F=5, and C=0.1. Compute the equilibrium values of n,P, and Q. (Hint: The equilibrium values for n and Q are integers. However, P is a fraction.) (12 points) b Suppose that for the Foreign country, we have S=250,b=2, F=5, and C=0.1. Compute the long-run equilibrium values of n,P, and Q. (12 points) c Compute the long-run equilibrium values of nW,PW, and QW in a world integrated free trade equilibrium with a value of S equal to S+S, i.e., SW=1690. (12 points) d How does trade integration affect the prices charged by firms and the overall number of varieties produced in the world economy? Suppose consumers value being able to consume a larger number of varieties. Is free trade welfare-enhancing

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