(4} (i) Suppose industry X is characterized by monopoly under autarky, while industry Y is perfectly competitive. (a) Write down and explain the rst-order condition for the monopolist and compare it to that for a representative rm in the competitive industry. (b) Using the relevant rst-order conditions, and the appropriate general equilibrium diagram, describe the nature of the monopoly market distortion compared to competition in both industries. (c) In this setting, what are the gains from trade? (ii) Suppose the above market structure under autarky is replicated in a home and foreign country, and the two economies are identical in every other respect. Also assume that once the economies are open, the rms in industry X behave in Cournot fashion. (a) Write down and explain the rst-order condition for the home firm. How does it compare to the rst-order conditions for a monopolist, and a representative firm in the competitive industry? Are there any gains from trade, and howr do they occur? (b) Can trade take place between the two economies, and if so, what is the structure of that trade? Hourr might transport costs affect such trade