consider Leo and Mark, who can produce cookies and tea using only 10 labor hours each.Leo can produce 60 cookies if he produces no tea; he can produce 20 units of tea if he produces no cookies.Mark can produce 40 cookies if he produces no tea; he can produce 16 units of tea if he produces no cookies.

Before trade, the best Leo and Mark could do was to consume at a point______ their PPF.With trade, the best Leo and Mark can consume is at a point _______ their PPF.

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