(I) For Krugman's model of intra-industry trade under monopolistic competition: A. Illustrate and explain how the monopolistically competitive equilibrium in autarky may be depicted using the basic Krugman diagram with the PP and CC curves. {A suggested structure is as follows: Discuss assumptions, discuss the behaviour of firms under the monopolistic competition model and the economic intuition behind the CC curve's equation. You do not need to derive the curve. Briefly discuss the economic intuition behind the PP curve's equation. Again, you don't need to derive this curve. Using a graph, discuss how equilibrium is attained in this model.}