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Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has
Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this years crop with him. Assume he produces 1,000 tons of almonds and his neighbor produces 800 tons of walnuts. If the market price of almonds is $100 per ton and the market price of walnuts is $110 per ton: a. Should he make the exchange? b. Does it matter whether he prefers almonds or walnuts? Why or why not? a. Should he make the exchange? The market value of the almond crop is $.. (Round to the nearest dollar) The market value of the walnut crop is $(Round to the nearest dollar.) So, should he make the exchange? | - (Select from the drop-down menu.) b. Does it matter whether he prefers almonds or walnuts? Why or why not? No. His preference is irrelevant to the value of the crops. Is the above statement true or false? | |, (Select from the drop-down menu.)
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