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Suppose two countries each produce wool and cotton. The country with the lower opportunity cost for ...

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Suppose two countries each produce wool and cotton. The country with the lower opportunity cost for ...

Suppose two countries each produce wool and cotton. The country with the lower opportunity cost for cotton (in terms of wool) is said to have

▸ a comparative advantage in the production of cotton.

▸ an absolute advantage in the production of both wool and cotton.

▸ a comparative advantage in the production of wool.

▸ an absolute advantage in the production of cotton.

▸ an absolute advantage in the production of wool.

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Microeconomics

Edition: 17^th

Author: Ragan

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