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An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 12 shirts, and Ricardo can produce 3
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 12 shirts, and Ricardo can produce 3 computers or 8 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?
Select one:
a. 1 computers and 10 shirts.
b. 2 computers and 14 shirts
c. 3 computers and 12 shirts
d. 4 computers and 8 shirts
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