Question
Jessica and John both work 8 hours per day to produce fish and coconuts. Jessica's daily production possibilities frontier is shown by PPF1 in the
Jessica and John both work 8 hours per day to produce fish and coconuts. Jessica's daily production possibilities frontier is shown by PPF1 in thelinked diagram, while John's is shown by PPF2. Based on their production possibilities frontiers you can conclude that John and Jessica
can benefit from trade if John specializes in producing coconuts and Jessica specialized in producing fish.
can not benefit from trade because John has higher costs of producing both coconuts and fish.
can benefit from trade if John specializes in producing fish and Jessica specialized in producing coconuts.
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