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Labor hours to produce one unit
United Kingdom United States
wheat 2 1
cloth 6 5
a. what is the opportunity cost of producing a unit of wheat in the united kingsom? In the united states?
b. which country has an absolute advantage in producing wheat? In producing cloth?
c. which country has a comparative advantage in producing wheat? In producing cloth?
d. which country should specialize in producing wheat? In producing cloth?
e. provide some examples of specialized markets or retail outlets. What makes the web so conducive to specialization?
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