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You are an efficient farmer of catfish and Arizona trout.
a. If you adopt a new technology which allows use of fewer resources for the production of both types of fish, draw a PPC of this situation and explain how your ppc will change and the effects of the change on the opportunity cost you face.
b. Suppose the new technology affects only the production of catfish - biased in favor of catfish production. how does that alter your answer to part a above.
c. Under what conditions would you choose to specialize in the farming of only one fish type or the other?
d. Given rapid technological change, is this a 'good' business? freely comment.
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