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Suppose That Vanuatu Can Produce 40 Logs or 400 Kg

Question 147

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Suppose that Vanuatu can produce 40 logs or 400 kg of sugar cane per month and Fiji can produce 30 logs or 300 kg of sugar cane per month. Will it pay for Vanuatu and Fiji to specialise and trade in these two commodities?

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No. Vanuatu and Fiji have exac...

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