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Consider a country producing food and clothes with a comparative advantage in food. A production possibility frontier of this country is concave. Imagine that global
Consider a country producing food and clothes with a comparative advantage in food. A production possibility frontier of this country is concave. Imagine that global warming results in warmer weather, better harvests, and expands the food production possibilities. Illustrate on the graph the change in PPF and show how such growth can (in theory) lead to a decline in country's welfare (be immiserizing)
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