Consider two identical economies, Home and Foreign, each with 2 goods and 1 factor of production where X is produced by a monopolist with the cost structure, C(X)=F+MC(X)X, where F is a fixed cost and MC(X) is the marginal cost of X.

a) Draw the autarky and the trade equilibrium for both Home and Foreign. (5 points)

b) What if in the Foreign country, instead of by a monopoly, X is produced by duopoly. How would this alter the Home trade equilibrium? (5 points)

c) What if in the Foreign country, instead of by a monopoly, X is produced competitively. How would this alter the Home country trade equilibrium? (5 points)

d) Suppose that instead of monopoly, good X is produced in both countries under monopolistic competition.How would this alter the Home trade equilibrium? (5 points)