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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
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 Rainier. Both countries produce almonds and lentils, each initially ie before specialization and trade producing million pounds of almonds and million pounds of lentils, as indicated by the grey stars marked with the letter
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 Rainier. Both countries produce almonds and lentils, each initially ie before specialization and trade producing million pounds of almonds and million pounds of lentils, as indicated by the grey stars marked with the letter
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