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Suppose that Britain can produce 10 units of cloth or 5 units of food per day (or any linear combination) with available resources and that
Suppose that Britain can produce 10 units of cloth or 5 units of food per day (or any linear combination) with available resources and that Greece can produce 1 unit of cloth and 2 units of food per day (or any combination). Britain has an absolute advantage over Greece in producing both goods. Does it still make sense for these countries to trade? Explain.
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