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Suppose that the United States and Germany can each produce two components of a smartphone: semiconductors and memory chips. They can produce these goods using

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Suppose that the United States and Germany can each produce two components of a smartphone: semiconductors and memory chips. They can produce these goods using the amounts of labor given in the table below. Labor Requirements per Unit of Output United States Germany Semiconductors 10 8 Memory chips 30 4 The U.S. has an ABSOLUTE advantage in the production of Semiconductors Memory chips Both goods Neither good 99+ OLDFOO O

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