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Suppose that a worker in China can grow either 40 units of coffee or 10 units of oranges per year, and a worker in Oman

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Suppose that a worker in China can grow either 40 units of coffee or 10 units of oranges per year, and a worker in Oman can grow either 5 units of coffee or 50 units of oranges per year. There are 20 workers in China and 20 workers in Oman. If the two countries do not trade, China will produce and consume 400 units of coffee and 100 units of oranges, while Oman will produce and consume 50 units of coffee and 500 units of oranges. Combined output for the two countries would therefore be 450 units of coffee and 600 units of oranges. If the two countries do trade, each will completely specialize in producing the good for which it has a comparative advantage. If trade occurs, combined output for the two countries will increase by O 350 units of coffee and 400 units of oranges. O 400 units of coffee and 350 units of oranges. O There would not be any increase. O 800 units of coffee and 1000 units of oranges

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