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(1) Explain what is absolute advantage and what is comparative advantage? (2) Using the information given in the table to demonstrate the pattern of
(1) Explain what is absolute advantage and what is comparative advantage? (2) Using the information given in the table to demonstrate the pattern of advantages between the two countries for the two products. Show their respective opportunity costs. (3) Suppose the exchange rate between the dollar and the RMB is RMB6.8/dollar and labor is the only input into the production. Calculate the prices of the products in both countries. Using the
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
