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The following hypothetical production possibilities tables for China and Canada. Assume that, before specialization and trade, the optimal product mix for China is alternative B

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The following hypothetical production possibilities tables for China and Canada. Assume that, before specialization and trade, the optimal product mix for China is alternative B and for Canada is alternative U. China Production Possibilities a. Are comparative cost conditions such that the two areas should specialize? Yes v If so, what product should each produce? China should produce apparel v . Canada should produce

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