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Maldonia has a comparative advantage in the production of , while Sylvania has a comparative advantage in the production of . Suppose that Maldonia and

Maldonia has a comparative advantage in the production of , while Sylvania has a comparative advantage in the production of . Suppose that Maldonia and Sylvania specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total ofmillionpounds of sugar andmillionpounds of lemons.

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