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Countries producing these two products

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Reference no: EM131095303

Assume that at maximum production levels, Japan can produce either 100 CD's or 50 DVD's.  The U.S. can produce either 90 CD's or 30 DVD's.

  1. Draw the PPF curves for each of these countries producing these two products.
  2. Who has the absolute advantage for each product? Why?
  3. Calculate the comparative advantage for each country in both CD and DVD production and show your results. Who has the comparative advantage for each product? Why?

Reference no: EM131095303

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