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Great Britain and the United States produce cheddar cheese and blue cheese. Current domestic prices per pound for each type of cheese are given in

Great Britain and the United States produce cheddar cheese and blue cheese. Current domestic prices per pound for each type of cheese are given in the following

table:

Great Britain United States

Cheddar cheese 3 $6

Blue cheese 6 $9

Suppose the exchange rate is 1= $1.

If the price ratios within each country reflect resource use, which country has a comparative advantage in the production of cheddar cheese? blue cheese?

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