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Tom and Susan produce nuts and coffee. Their maximum production is represented by the following functions: Tom: Q nuts = 1250 - 2Q coffee Susan:
Tom and Susan produce nuts and coffee. Their maximum production is represented by the following functions:
Tom: Qnuts = 1250 - 2Qcoffee
Susan: Qnuts = 450 - 0.5Qcoffee
Before they trade Tom is producing and consuming 650 nuts and 300 coffee.
Before they trade Susan is producing and consuming 300 nuts and 300 coffee.
Then they decide to specialize and trade based on comparative advantage. They agree to trade 500 nuts for 450 coffees. How many MORE nuts will Tom have with trade compared to without trade?
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