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A Butcher Can Produce Only Hamburgers, and a Farmer Can

Question 56

Multiple Choice

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:


A) cannot gain from trade
B) could gain from trade under certain circumstances, but not always
C) could gain from trade because each would enjoy a greater variety of food
D) could gain from trade only if each were indifferent between hamburgers and potato chips

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