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Assume that the tables below give combinations of the number of bottles of Kahlua and bottles of champagne that France and Mexico would be able
Assume that the tables below give combinations of the number of bottles of Kahlua and bottles of champagne that France and Mexico would be able to produce in one week using equivalent amounts of resources.
MexicoFrance
ChampagneKahluachampagneKahlua
100500
82405
643010
462015
281020
010025
What would be the terms of trade range for a bottle of champagne if France and Mexico both specialize and trade?
What would be the terms of trade range for a bottle of Kahlua if France and Mexico both specialize and trade?
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