Two Countries Fighting over Car Production. Suppose there are monopoly profits in the production of cars, but two countries are each determined to capture the industry. One country uses a policy...

Two Countries Fighting over Car Production. Suppose there are monopoly profits in the production of cars, but two countries are each determined to capture the industry. One country uses a policy measure to support its domestic firm, but the other country cannot match the tactic as it violates its competition policy. As a result, only one of the firms stays in business. Who gains and who loses? Consider the effects on the firms, consumers, and taxpayers.