One way to determine where comparative advantage lies is to compare the quantity of good A that

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One way to determine where comparative advantage lies is to compare the quantity of good A that must be given up in order to get a given quantity of good B from domestic production. If the same quantity of B can be obtained for less A by engaging in world trade, we have a comparative advantage in the production of good A. Comparative advantage rests on a comparison of relative opportunity costs. LO21-1

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The Micro Economy Today

ISBN: 9781259291814

14th Edition

Authors: Bradley Schiller, Karen Gebhardt

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