Question
Cocoa is the largest export commodity for both Ghana and its neighbour the Ivory Coast (In the past, Ghana was ranked the largest exporter; currently
Cocoa is the largest export commodity for both Ghana and its neighbour the Ivory Coast (In the past, Ghana was ranked the largest exporter; currently it is second after Ivory Coast). A healthy competition exists between both nations incentivizing them to find new ways (technologies) to increase output, and earn the honour of being crowned the largest world producer. Explain (using the relevant theory and diagram) how a technology that results in excessive output in both countries (ultra pro-trade biased production) could end up making both economies less well-off. (12 Marks)
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