Question: ( a ) . Derive the autarky ( i . e . , no international trade ) equilibrium for country H: the price of each

(

) .

Derive the autarky

(

.

.,

no international trade

)

equilibrium for country H: the price of each good, output of each good, and the number of firms.

(

) .

Derive the free trade equilibrium

(

price

,

output and the number of firms

)

supposing that there is no international transport cost. How much does the price for each product drop? How many more varieties are available for each country's consumers?

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