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Country A is more efficient at producing wheat than rice, and Country A is more efficient at producing both commodities than is Country B. Country
Country A is more efficient at producing wheat than rice, and Country A is more efficient at producing both commodities than is Country B. Country B is more efficient at producing rice than wheat. According to the theory of absolute advantage, it will be advantageous to Country A to focus on producing wheat and to buy some of the rice it needs from Country B.
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