Could you please answer Question 4?Thx

Price, cost (per watch) Co P2 2 AC SWISS ACTHAI D THAI DWORLD Quantity of watches produced and demanded From the diagram above, which of the following is true and based on our external economies of scale lectures? Even if Switzerland starts by being the world's supplier and Thailand has not entered yet, Thailand has a low enough cost curve that it can enter the watch market and being the global supplier Switzerland will end up supplying the entire world's demand for watches while Thailand will produce watches for only its own domestic market Switzerland can produce watches more cheaply than Thailand, at the same quantity produced Thailand is better off without trade, since it could produce watches for itself more cheaply than it could if Switzerland provided the world's watches