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An American worker and a Japanese worker can each produce 10 cars per month. By contrast, an American worker can produce 200 tons of food per month while a Japanese worker can only produce 100 tons of food per month.
1. Which country has an absolute advantage in car production? Which country has an absolute advantage in food production?
2. For the American worker, what is their opportunity cost for producing food? What is their opportunity cost for producing cars?
3. Which country has a comparative advantage in food production? Which country has a comparative advantage in car production?
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