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Country Capital Goods Consumer Goods Land P 20 units 120 units Land D 60 units 120 units A) According to the chart, calculate which country
Country | Capital Goods | Consumer Goods |
---|---|---|
Land P | 20 units | 120 units |
Land D | 60 units | 120 units |
A) According to the chart, calculate which country has the comparative advantage in manufacturing CAPITAL goods
B) If land D shifted from manufacturing 50 units of capital goods and 20 units of consumer goods to 35 units of capital goods and 50 units of consumer goods, what would the impact be in the long run? C) Based on the table, what range of consumer goods could be traded for 10 capital goods that would be beneficial to both Land P and Land D?
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