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Can sue and tessa still gain from trade

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Reference no: EM131611422

Question: Suppose that Tessa buys a new machine that enables her to make 20 jackets an hour. (She can still make only 80 caps per hour.)

a. Who now has a comparative advantage in producing jackets?

b. Can Sue and Tessa still gain from trade?

c. Would Sue and Tessa still be willing to trade 1 jacket for 15 caps? Explain your answer.

Reference no: EM131611422

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