The Green Revolution was based in part on extensive experimentation. The following data illustrates the relationship between nitrogen fertilizer (in pounds of nitrogen) and the output of a particular type of wheat (in bushels). Each observation is based on one acre of land and all other relevant inputs to production (such as water, labor, and capital) are held constant. The fertilizer levels are 20, 40, 60, 80, 100, 120, 140, and 160, and the associated output levels are 47, 86, 107, 131, 136, 148, 149, and 142. Required:
Use Excel to estimate the short-run production function showing the relationship between fertilizer input and output.

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?