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Problem 1 Suppose two countries, Canada and Japan are considering making computers. Firms in each individual country are iden

international trade: Internal Economies of Scale

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Sol: Given data, 7 Suppose two Contoies, Canada and Japan are Considering making Computers. It Costs $5 million to Set up a CMarket Size S = $3 Million Sc = $5.33 Million Equation as q=0/0 Autaoky - Then, at Equation CC - pp (50,00,000)n +36 - B0+ 15Now s Integrated Market 2 3 Million +533 Million = 8,33 Million Then at Equation, de its - 34.99 n25 froms in would Market Ca

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