Question
The following table shows the amount of good A and good B that two countries could produce if they devoted all their resources to
The following table shows the amount of good A and good B that two countries could produce if they devoted all their resources to that good. For example, if Canada uses all their resources to produce Good A, then Canada can produce 250 Good A. Assume both countries have the same amount of resources and the trade-off between good A and good B. Canada USA Good A Good B 250 350 1000 700 a. Which country has the absolute advantage in good A? In good B? Why? b. Which country has the comparative advantage in good A? In good B? Why?
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South-Western Federal Taxation 2018 Comprehensive
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