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Unformatted text preview: : When one producer can produce a good at a lower opportunity cost . Tom Wilson 1 more Fish 1 more Coco Who has Comparative Advantage in Cocos _______________ Fish _______________ Since they have different Opportunity Costs Better Option. II. They should each Specialize Specialize : Each focus on one item, They must each Benefit: Will the Following Trades’ Take place? 1. 8 Fish for 12 Coconuts 2. 15 Coconuts for 5 Fish 3. 10 Fish for 10 Coconuts Tom’s new consumption Bundle is _________________ Wilson’s new Consumption Bundle is _________________...
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This note was uploaded on 12/05/2011 for the course ECON 101 taught by Professor Dezhbakhsh during the Fall '07 term at Emory.
- Fall '07