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Ceasefire conditions relate to opportunity cost

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The Colombian government and the main rebel group have recently agreed to a bilateral ceasefire. This includes two economic dimensions: land reform involving redistribution of land to poor farmers, and the end of illegal drug trade, with drug production to be replaced by alternate crops. Explain how these ceasefire conditions relate to opportunity cost. How successful do you think drug trade elimination will be if the world price of illegal drugs increases?

Reference no: EM131218345

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