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Justin can produce 40 mugs or 10 bowls in an hour. Mike can produce 20 mugs or 10 bowls in an hour. Who has a
Justin can produce 40 mugs or 10 bowls in an hour. Mike can produce 20 mugs or 10 bowls in an hour. Who has a comparative advantage in producing mugs? If Justin and Mike specialize in producing the good in which each has a comparative advantage, and then trade mugs and bowls, who gains from the specialization and trade? Why? (2 MARKS)
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