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Farmer Fred Could Grow Wheat and Barley

Question 202

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Farmer Fred could grow wheat and barley. He could grow 75 bushels of wheat or 125 bushels of barley using the same resources on an acre of his land. The price of wheat is $2.00 per bushel and the price of barley $ 0.80. Show the benefits to Fred from specialization. What should he specialize in?

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Farmer Fred could make $150 if he grew o...

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