The Same Monopolistic Competitor in an Automobile Market After Opening Trade
(Figure 5.3)

After trade, marginal revenue equals marginal cost at point E. Press "Show MR=MC" to show the new equilibrium quantity and point E on the graph. The firm will charge a price of 1.5 million yen per car. Press "Show Price" to show the post-trade price charged by the firm. The net result of opening of trade is that the monopolistically competitive firm produces more and sells each unit at a lower price.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.