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When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity

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When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Yosemite and Congaree. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of corn and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. Yosemite Congaree Bb 48 42 42 36 36 PPF 30 30 24 24 BASIL (Millions of pounds) BASIL (Millions of pounds) 18 PPF 18 12 12 0 12 18 24 30 36 42 48 6 12 18 24 30 36 42 48 0 6 CORN (Millions of pounds) CORN (Millions of pounds)

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