What role do domestic opportunity costs play in determining a nations area of comparative advantage and therefore
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What role do domestic opportunity costs play in determining a nation’s area of comparative advantage and therefore specialization relative to that of a trading partner? Provide a numerical example (no need for a table) to support your answer. How does specialization and trade reduce a nation’s total cost of obtaining products? Why is specialization sometimes incomplete, such that countries import some of the same categories of goods that they export?
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Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
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