A firm based in Ireland produces and sells bicycles in Ireland and in England. The demand for bicycles in Ireland is given by: P = 280 - Q where P is the Irish price and Q is the quantity sold in Ireland. The demand in England is given by: P* = 400 – Q* where P* is the English price and Q* is the quantity in England. The cost of production in Ireland is Y2 where Y is the quantity produced. The cost of production in England is Z2. The cost of transportation is 20 per unit. There is a fixed cost of 8,000 which is incurred by all the active production sites. For the next 4 questions, assume that the Irish firm produces all the bicycles in the home country and serves the British market via exports only

a. Calculate the equilibrium price of a bicycle in Ireland, respectively in England. Then, calculate the total profit earned by the Irish firm. Now, assume that the firm is considering setting up production in England (while still keeping open the possibility of supplementing the British plant with production exported from the Irish plant). 16. (5 points)
b. Write down the total revenue earned by the Irish multinational. Express this as a function of the quantities produced as exported by the two plants (i. e., Y, Z and X). 17.(5 points)
c. Write down the total cost of production and trade associated with operating the two plants. 18.(10 points)
d. Write down the profit function for the Irish MNC and solve for the equilibrium: a) production in Ireland b) production in England c) exports from the Irish plant to the British plant

2. the external environment (connect)choose whether each example belongs in the general, task, or internal environment.exampleenvironmenta worldwide recession task environment / general environment / internal environmentlocal mothers asking their community grocery store to carry no-salt cheerios-type cereal for their babies task environment / general environment / internal environmentchoose the phrase that best completes the following sentence.the relationship between the task environment and the general environment is best described as: a one-way system: changes in the task environment affect the general environment, but changes in the general environment do not affect the task environment.an open system: changes in the task environment affect the general environment, and changes in the general environment affect the task environment.a one-way system: changes in the general environment affect the task environment, but changes in the task environment do not affect the general environment.a closed system: changes in the general environment do not affect the task environment, and changes in the task environment do not affect the general environment.©bloomberg via getty imagesmanagement in the newsin april 2010, the explosion of british petroleum’s (bp) deepwater horizon oil drilling rig and the accompanying oil spill dramatically changed the external environment in which all oil companies operate. the explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the gulf coast. the conditions that led to the spill, the attempts to stop the spill, and the clean-up and aftermath of the spill prompted debates in the u.s. senate, concern on wall street, and attention from companies all over the world.match each oil spill event with a specific dimension of the general environment.eventgeneral environment dimensionbp stock prices falling 25% during the first month after the oil spill oil seeping into pelican nesting grounds, which will place the brown pelican back on the endangered species list people moving from louisiana to oklahoma to avoid the effects of the spill