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Business, 05.02.2021 21:40 ericlawton

Jorge and Allison produce sandwiches and salads. See their production schedules below. Production Possibilities Schedules
Sandwiches Salads Sandwiches Salads
8 0 3 0
3 2 2 2
0 4 0 6

Required:
a. If Jorge produces all sandwiches and Allison produces all salads, what is total production?
b. Suppose the terms of trade are 3 salads for 4 sandwiches. If Jorge trades 4 sandwiches for 3 salads, how many sandwiches and salads will he be able to consume?
c. If Allison trades 3 salads for 4 sandwiches, how many sandwiches and salads will she be able to consume?
d. Compared to the situation where each individual did not specialize, what are the gains from trade?

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