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Graph the following example and answer the questions: The United States and Japan only produce two goods. They have the same fixed resources and they are equally efficient, and both countries have constant opportunity costs between the two goods. In one month, the United States can make 200,000 units of fiber optic cable or 600,000 flash drives. Japan can produce 300,000 units of fiber optic cable or 600,000 flash drives.
**If both countries devote 50% of their resources to the production of both goods...
**If the two nations each specialize where they have a comparative advantage...
**Compared to when each nation was producing both goods...
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Arc Elasticity of Demand - Arc elasticity calculates elasticity over the range of prices - The formula of it is: * Arc Elasticity of Demand: An Example
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