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Assume there are four firms in the global electric vehicle (EV) market: Tesla (USA), BYD (China), BMW (Germany) and Nissan (Japan). Also assume that each firm can produce at most one EV per period at the following per-unit costs (in thousand dollars):
Tesla:60 BMW:40 BYD:20 Nissan:20
Globally, there are four consumers with the following willingness to pay (in thousand dollars) information for an EV within a given period:
Hesti:70 Iska:20 Jialin:80 Muchen:40
If the goal is to maximize social surplus:
A. How many EVs should be produced?
B. Which firms should produce those EVs?
C. Which consumers should purchase those EVs?
D. What is the maximum social surplus in the global EV market?
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