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a. (3 marks) Consider the following representation of the Ricardian Model. Two countries, Australia and Cambodia, both produce two products rice and paper. Total labour
a. (3 marks) Consider the following representation of the Ricardian Model. Two countries, Australia and Cambodia, both produce two products rice and paper. Total labour supply in Australia is 300 and the total labour supply in Cambodia is 300. The table provides the marginal product of labour () to produce cars and paper in each country. Australia Cambodia Rice 4 15 Paper 26 Cambodia has the absolute advantage in producing rice and paper. Then, Australia is less efficient at producing both products compared to Cambodia. True or False? Explain
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