Identical production possibilities frontiers

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Reference no: EM13854536

Assume two economies that have identical production possibilities frontiers. Show how they can still gain from trade if their populations have different tastes. (Graph 2 different sets of indifferent curves to represent the different tastes, then determine the relative price ratios in each country in the absence of trade. Use combination of words and diagrams.)

Reference no: EM13854536

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