Legal Applications 11. Greg, Eloise, and Jana Hook decided to form a ski rental and repair business as
an LLC. Jana invested $250,000 and Eloise and Greg each invested $100,000.. The
operating agreement indicated that they had elected per capita voting. Two
years later they were considering opening a second location. In the decisive
vote, Jana voted not to open the business but Eloise and Greg voted to do so.
Will the LLC be authorized to open the second location as a result of the vote?
Explain your answer.

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?