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Given the following production capabilities for cheese and bread, which nation will export cheese to the other? What might be a mutually beneficial exchange rate for cheese and bread? Cheese Bread
France
40 units
or
60 units
Italy
10 units
5 units
Explain. A family buys a new refrigerator, Aunt Jane buys a new house, Ford sells a Mustang from its inventory, You buy a pizza, California repaves Highway 101, Your parents buy a bottle of French wine, Honda expands its factory in Marysville, Ohi..
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What happens when tariffs are imposed in terms of the exporting and importing countries? Use graphs as needed and describe your answer thoroughly.
Compute the new equilibrium and has the decision to break the firm into two increased consumer surplus
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