Suppose there are two individuals, casey and rick, who live in a very simplified world where only two goods are produced and consumed: fruit and vegetables. the production opportunity cost for casey is 6.00 kg of fruit for every kilogram of vegetables. rick has a production opportunity cost of 4.00 kg of fruit for every kilogram of vegetables. casey eventually realizes that, through trade, both individuals can be better off. rick is willing to trade. what price can be settled between these two parties such that both individuals can enjoy more fruit and vegetables? price: kg of fruit per kilogram of vegetables

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?