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Please give me a detailed explanation about this question, thanks.

0/1pts Question 4 UE A E X P* Consider two identical countries save for H imposed a production tax on X. In autarky, the prod

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Answer #1

the indifference curve and the ppf are intersecting at point E.

The autarky prices will be when the tangent to the PPF is made at this point which is the point of optimal production.

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