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Consider the following spatial example involving trade and the following five coun- tries: U.S. (u), Japan (j), Canada (c), England (e), and Russia (r). The inverse market demand functions for each country are:pdu = 300 - 1qdu pdj = 275 - 1qdj pdc = 200 - 1qdc pde = 155 - 1qde pdr = 220 - 1qdr
Suppose the five countries have the following inverse supply functions:psu = 30 + 1qsu psj = 75 + 1qsj psc = 20 + 1qsc pse = 15 + 1qse psr = 45 + 1qsr
Further assume the following unit transportation costs across all countries:
u
j
c
e
r
0
8
1
4
5
9
10
6
3
2
Write the spatial equilibrium mathematical programming model corresponding to this problem assuming perfect competition.
Suppose that you are the general manager at a plant that will be closing in one year. It is a small plant, and so is not subject to the Worker Adjustment and Retraining Notification Act (WARN). Must you give your employees advance notice of the closi..
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Write the system in matrix form and solve for the equilibrium prices and quantities.
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