Anyone, please, would you be so kind to help me with this task??

U 2. A large part of international trade today is intraindustry trade, i.e. that countries exchange similar products belonging to the same industry. A commonly used model to analyze this type of trade is the so-called model of monopolistic competition, where each rm benets from internal returns to scale and sells a differentiated product. a) Explain the difference between internal and external returns to scale. b) Describe what this model says about the relationship between rms' average cost and the number of rms Explain your answer. c) Describe what this model says about the relationship between rms' prices and the number of rms. Explain your answer. (1) Use a graph with price and cost on the vertical axis and the number of rms on the horizontal axis to describe what happens to welfare when two identical countries start to trade with each other. Explain your