What is the range for the relative price

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Go back to the numerical example with no factor substitution that leads to the production possibility frontier in figure 5-1.

a. What is the range for the relative price of cloth such that the economy produces both cloth and food? Which good is produced if the relative price is outside of this range?

For parts b-f assume the price range is such that both goods are produced

Reference no: EM131073972

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