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Business, 17.01.2020 21:31 crippyjay

The town of chester has an economy composed entirely of two equally sized food companies. both company q and company r produce peanut butter and jam. company q is better at producing jam than company r which is better at producing peanut butter. in order to maximize output company r should

a. produce both jam and peanut butter on its own and sell its excess peanut butter to company z for additional jam b. reduce its production of peanut butter in order to commit resources to learn how to better produce jam
c. abandon the production of jam to fully specialize in the production of peanut butter and then trade with company q for jam

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