Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and consumed: rice and beans. The production opportunity cost for Casey is 4.00 kilograms of rice for every kilogram of beans. Rick has a production opportunity cost of 2.00 kilograms of rice for every kilogram of beans Eventually Casey realizes that through trade, both individuals can be better off and Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more of rice and beans?

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8 February, 08:05

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Reagan Lynn · Answer 1

Reagan Lynn 8 February, 08:30

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The answer you should get is 150