Hannah likes to frequent citrus, a fine dining restaurant, as she loves its beef lasagna and orders it every time she visits the restaurant. however, during her recent visit, the lasagna she was served was undercooked and starkly different in flavor compared with the ones she had previously eaten at the restaurant. when she informed the manager about it, she learned that the food was cooked by a replacement chef as the usual chef was on leave. in this scenario, which of the following characteristics of services is responsible for the lack of consistency and quality of the food at citrus? a. inseparabilityb. intangibilityc. perishabilityd. heterogeneity

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?