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Julia Can Produce 15 Apple Pies or One Dozen Croissants

Question 131

Essay

Julia can produce 15 apple pies or one dozen croissants in one day. Jacque can produce two apple pies or 10 dozen croissants in one day.
a. Draw the production possibilities frontiers for Julia and Jacque.
b. What pattern of specialisation and trade will benefit both Julia and Jacque?

Correct Answer:

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a. The production possibilities frontier...

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