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Below, you are provided with Argentina's and Brazil's Production Possibilities Frontiers between shirts and pairs of shoes. You will use these PPFs to identify the
Below, you are provided with Argentina's and Brazil's Production Possibilities Frontiers between shirts and pairs of shoes. You will use these PPFs to identify the opportunity,r cost of producing an additional unit of each good in both countries, to determine which country has a comparative advantage in the production of each good, and to characterize the desired pattern of specialization- PPFA depicts Argentina's PI'F between shirts and pairs of shoes, and PPFB depicts Brazil's PPF between shirts and pairs of shoes. Both PPFs are linear, which implies that opportunity costs remain constant as you move along each PPF. F'a'lrs of Shoes [in hundred thousands} El] 190 15:] 20C! 250 300 350 Shlrts {In hundred thousands} Port 1: What is the opportunity cost of producing an additional shirt in Argentina? Port 2: What is the opportunity cost of producing an additional shirt in Brazii? Port 3: Which country has a comparative advantage in the production of shirts
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