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Business, 15.04.2021 18:00 Lamr

Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn without trade. Suppose Simon and Dave specialize and that the terms of trade are 1 pound of green beans for 1 pound of corn. If Simon sells Dave 80 pounds of green beans, then the gains from trade for Simon are pounds of green beans and pounds of corn with trade and specialization.

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Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that...

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