Question: (a) Which intermediates are offshored to Foreign and which are produced in Home? (Hint: solve for the intermediate a* such that p (a*) =p(a*) .)

 (a) Which intermediates are offshored to Foreign and which are produced

in Home? (Hint: solve for the intermediate a* such that p (a*)

(a) Which intermediates are offshored to Foreign and which are produced in Home? (Hint: solve for the intermediate a* such that p (a*) =p(a*) .) (b) What is the cost of producing the final good, log P

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