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Grain is produced by labour-intensive means in East Africa but by capital-intensive means in Saskatchewan because (A) Canada is much wealthier than East Africa. (B)
Grain is produced by labour-intensive means in East Africa but by capital-intensive means in Saskatchewan because (A) Canada is much wealthier than East Africa. (B) capital is much cheaper in Canada. (C) consumer preferences place a lower relative weight on food in Canada than in East Africa. (D) the relative prices of labour and capital differ dramatically in the two areas. (E) none of the above
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