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Can somone plese help me solve I'm having trouble with knowing the steps. Foreign, which has 800 units of labor. Foreign's MPL in producing applies
Can somone plese help me solve I'm having trouble with knowing the steps.
Foreign, which has 800 units of labor. Foreign's MPL in producing applies is 1/5, and its MPL in producing bananas is 1.
i. Graph Foreign's PPF
ii. In the absence of trade, what would be the price of apples in terms of bananas? Why?
iii. Which good does Home have the comparative advantage in? Why?
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