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i) Define opportunity cost ii) Use the notion of opportunity cost to explain the concept of comparative advantage. (Use a numerical example if you wish)

i) Define "opportunity cost"

ii) Use the notion of opportunity cost to explain the concept of comparative advantage. (Use a numerical example if you wish)

iii) Assume you are in an economy where labor is the only factor of production.

a. Define "unit labor requirement".

b. Define production possibility frontier (PPF)

c. Given constant opportunity costs of production for two goods, draw the PPF for a given country.

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