In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps
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In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Who has a comparative advantage in producing caps? If Sue and Tessa specialize and trade, who will gain?
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To find out who has a comparative advantage in producing caps we need to compute the opportunity cos...View the full answer
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