Consider an industry and two countries: the home country and the foreign one. all foreign variables are denoted with an asterisk. the average costs curves in the two countries are given by av = c0 − c1q and av ∗ = c∗0 − c∗1q∗. the inverse demand curves are equivalent in the two countries: p = d0 − d1q and p ∗ = d0 − d1q∗. assume d0 > c0 andd0 > c0∗ a) calculate the equilibrium prices and quantities in the two countries under autarky. under which conditions on parameters does the foreign country produce more? (3 marks) b) now consider the free trade equilibrium and assume that the country that produces more in autarky becomes the only world supplier. assuming that the conditions you stated under a) hold, compute the world equilibrium price and quantity under free trade. (4 marks) c) what is the per-unit production subsidy that would allow the other country to become the only world supplier under the conditions you stated in a)? (4 marks) d) identify the conditions on parameters under which the country that would not ex- port in part b) would be the most efficient world supplier (the lowest-price supplier) under the same assumption used in b), i. e. that only one country will be the world supplier