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QUESTION 2 Consider the following hypothetical scenario of two countries, Ivory Coast and Malawi. Assume the following: . There are two products, oil and maize.
QUESTION 2 Consider the following hypothetical scenario of two countries, Ivory Coast and Malawi. Assume the following: . There are two products, oil and maize. . Consumers in both countries desire both goods . The goods are homogenous (consumers in either country cannot differentiate between oil and maize from either country) . Labour is the only factor of production available in both countries Table 1: Worker hours per good _IEEl_ Oil barrel/hr Maize barrel/hr (i) Assume Zambia and Senegal each have 100 worker hours, illustrate using a similar table as above, the output of each product that is produced by each country. In other words. if you have 100 hours of labour and good A reguires 1 hr of labour to produce 1 unit. how many units of good A can be produced using the 100_hrs etc? [4 marks] (iii) Using the gures indicated in your answer in (ii) above, illustrate the quantities each country can produce on its own in a production possibility frontier (PPF) [5 marks]
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