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Without knowing the number of labor hours required to produce an auto in South Korea, you cant figure out which country has the comparative advantage
- Without knowing the number of labor hours required to produce an auto in South Korea, you can’t figure out which country has the comparative advantage in which good. Can you give an example of a number for the empty cell of the table that would give the United States the comparative advantage in the production of airplanes? What about South Korea?
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To determine the comparative advantage between two countries in the production of two different goods we need to compare the opportunity costs Well use an example to better understand this Lets assume ...
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Modern Principles Of Economics
Authors: Tyler Cowen, Alex Tabarrok
2nd Edition
1429239972, 9781429239974
