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Consider the following table that presents the labour requirements for production in the East and West (labour hours per unit of output) Food Clothing East
Consider the following table that presents the labour requirements for production in the East and West (labour hours per unit of output)
Food | Clothing | |
East | 10 | 20 |
West | 5 | 15 |
a) Does the East have acomparative advantage in clothing production? Does the West have acomparativeadvantage in clothing production? Does the East have acomparative advantage in food production? Does the West have acomparative advantage in clothing production? Explain.
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