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46 Figure: A Firm's Production With and Without Offshoring I R&D Yo production 100 80 60 - Yo Line B Line A 60 80 100

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46 Figure: A Firm's Production With and Without Offshoring I R&D Yo production 100 80 60 - Yo Line B Line A 60 80 100 120 140 200 Component production Reference: Ref 7-1 (Figure: A Firm's Production With and Without Offshoring I) In "no-offshoring" equilibrium, how many units of component production will there be? 60 80

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