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Alice and Bob both like making bread and jam. In one day Alice can make 11 loafs of bread or 21 jars of jam. In

Alice and Bob both like making bread and jam. In one day Alice can make 11 loafs of bread or

21 jars of jam. In one day Bob can make 7 loafs of bread or 37 jars of jam.

Question:Has specializing in their comparative advantage good made them better off overall? Explain your

answer fully, including explaining what is meant by 'comparative advantage'.

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