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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 anabsolute advantage in clothing production? Does the West have anabsolute advantage in clothing production? Does the East have anabsolute advantage in food production? Does the West have anabsolute advantage in clothing production? Explain.
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