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When Australia has a closed economy for flowers, a bouquet of flowers sell for $50. Assuming Australia does not have the comparative advantage in the
When Australia has a closed economy for flowers, a bouquet of flowers sell for $50. Assuming Australia does not have the comparative advantage in the production of flowers, the opening up the flowers market in Australia to international trade will result in Australian producers being better off as the price of flowers will exceed $50. Correct this statement and provide for a brief example proving why this statement is incorrect.
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