Review the information in Figure 2.4. Choose a rate of trading cherries for apples different from the

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Review the information in Figure 2.4. Choose a rate of trading cherries for apples different from the rate used in the text (15 pounds of cherries for 10 pounds of apples) that will allow you and your neighbor to benefit from trading. Prepare a table like Table 2.1 to illustrate your answer.

Devote all time to picking apples Devote all time to picking cherries Apples You 20 pounds 0 pounds Cherries



Apples (pounds) 20 0 Your PPF 20 (a) Your production possibilities frontier Cherries (pounds) Apples (pounds)

Production and consumption without trade Production with trade Consumption with trade Gains from trade

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Related Book For  answer-question

Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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