Class 1 172009 26 how should production be organized

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Unformatted text preview: 1/2 bale Opportunity cost of fine wool in Australia = If Australia produces the first bale of fine wool, we observe a smaller decrease in coarse wool output Efficiency demands that Australia produce the first bale of coarse wool Why? Because Australia is the producer with the low opportunity cost 1/7/2009 Class 1 27...
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This note was uploaded on 05/16/2010 for the course ECON Section 40 taught by Professor Hogan during the Winter '09 term at University of Michigan.

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