No-trade equilibrium in foreign

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Reference no: EM137065

Q1. Use the suitable formulas to create 2 new columns for total profit as well as profit margin, correspondingly. Illustrate the maximum profit the El Dorado Star can earn? Illustrate the maximum possible profit margin? Are profits as well as profit margin maximized at the equal point on demand?

Q2. Illustrate a new point, A * , that is the no-trade equilibrium in Foreign. How do the relative no trade prices of computers compare in Home and Foreign? Therefore, what will be the pattern of trade between the countries, and why?

Reference no: EM137065

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