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Suppose that Canada and the United States both produce maple syrup and honey that are sold at the same price in both countries. The following
Suppose that Canada and the United States both produce maple syrup and honey that are sold at the same price in both countries. The following table shows some of the combinations of the two goods that each country can produce in one day using the same amount of labor and capital.
- Which country has a comparative advantage in the production of maple syrup?
- If the two countries choose to trade, whichcountry should specialize in producing honey?
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