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Suppose that Croatia and Wales both produce olive oil and liquor. Croatia's opportunity cost of producing a case of liquor is 5 crates of olive
Suppose that Croatia and Wales both produce olive oil and liquor. Croatia's opportunity cost of producing a case of liquor is 5 crates of olive oil while Wales's opportunity cost of producing a case of liquor is 11 crates of olive oil. By comparing the opportunity cost of producing liquor in the two countries, you can tell that has a comparative advantage in the production of liquor and has a comparative advantage in the production of olive oil
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