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Using production possibility frontiers, and indifference curves for Argentina and Brazil, illustrate and explain the movement of both countries to the free-trade equilibrium pattern of production, consumption, trade and the gains from trade for the two countries. That is, explain the sequence of the argument as to how mutually beneficial trade between the two countries is possible.
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you and your neighbor (n) consume without trading. suppose you are initially consuming 7 bananas and 3 coconuts and your neighbor is initially consuming 6 bananas and8 coconuts. Yo
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