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Production of chocolate and coffee

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Reference no: EM131348555

Suppose the north and south are trading cities and have the following production of chocolate and coffee: North output per hour is 2 chocolate and 8 coffee.

South output per hour 1 chocolate, 1 Coffee. Suppose the north switches 1 hour of production from chocolate to coffee and south switches 2 hours of production from coffee to chocolate. If the transaction takes 30 minutes to execute will exchange occur between the north and the south? WHY

Reference no: EM131348555

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