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Country A and Country B are producers of Cars and Computers. In Country A, it takes 40 minutes to produce a car and 20 minutes
Country A and Country B are producers of "Cars" and "Computers." In Country A, it takes 40 minutes to produce a car and 20 minutes to produce a computer. In Country B, it takes 40 minutes to produce a car and 10 minutes to produce a computer. (a) (2 points) Which country has the absolute advantage in producing each good? Why? (b) (5 points) What are the opportunity costs to produce each good in each country? Which country has the comparative advantage in producing each good? Why
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