Discussion Post
We noted that when countries integrate, the number of world varieties will be high than each country's autarky level, but less than the sum of both country's autarky varieties, implying some of the initial varieties in each county exit. When firms making different varieties also have different marginal costs, what happens when a country integrates? Which varieties survive, and which ones exit? Why does this create an additional gain from trade?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.