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. Consider a closed economy with two rms. Firm 1 produces 10 units of corn with 10 units of labor and no capital. Firm 2

. Consider a closed economy with two rms. Firm 1 produces 10 units of corn with 10 units of labor and no capital. Firm 2 produces 10 units of tortillas using 5 units of corn, 5 units of labor and 5 units of capital. Firm 2 buys corn from Firm 1.

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