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147:. Different goods have differing levels of tradability: the higher the cost of transportation and the shorter the shelf life, the less tradable a good is. Prepared food, for example, is not generally considered a tradable good; it will be sold in the city in which it is produced and does not directly compete with other cities' prepared foods. Some non-commodities and services such as
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for perfectly tradable goods. The differences between it and other methods are the result of non-tradable goods and the above-mentioned Penn effect.
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that can be sold in another location distant from where it was produced. A good that is not tradable is called
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are also obviously non-tradable. However, in recent years even pure services such as
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opportunity. Goods that cannot be costlessly traded are not subject to this law.
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Less than perfectly tradable goods are subject to distortions such as the
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