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Consumer goods and 800 units of capital goods

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We are currently at the following point on our PPC: 1,000 units of Consumer Goods and 800 units of Capital Goods.

Suppose now this economy produced 600 additional units of Consumer Goods, would there be any long term cost to this economy from this change in the current production combination and if so, what would these cost be?

Reference no: EM132197731

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