Problem 1 Suppose the Home country's total cost of producing widgets can be given by the function: QW3 TOW: 4 3W + mow a) Derive the average cost function for widgets, ACW. b) Over what range of Qw does Home experience economies of scale? (Hint: You may nd it useful to use a graphic calculator or program like https: / /www.desmos.com / calculator) c) Suppose Foreign has average costs that are exactly twice as large as Home's. Assume both countries face identical demand for widgets in autarky. Considering only the range in your answer to part b), draw a graph demonstrating the autarky price of widgets in each country. (1) Determine what will happen in the world widget market if the two countries open up to trade