Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN: 9781260110999
Author: Frank, Robert
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 2, Problem 7P

(a)

To determine

Calculate the amount earned by Susan and Tom by selling all they produced on the basis of comparative advantage.

(b)

To determine

The maximum amount of coffee and nuts that Susan and Tom can buy in the world market with their income and the combination of 40 pounds of coffee and 8 pounds of nuts is attainable or not.

(c)

To determine

The change in the production possibility curve after the specialization.

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