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A Rancher Can Produce Only Hamburgers, While a Farmer Can

Question 7

Multiple Choice

A rancher can produce only hamburgers, while a farmer can produce only French fries. If the rancher and the farmer like both foods, which of the following is most likely?


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

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