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Suppose that the supply sides of France and Italy are each described by a simple Ricardian model with two goods, A and B. The technology is as follows.
A B Labor
France 4 2 200
Italy 2 4 200
Who has a comparative advantage in what? Who has an absolute advantage in what?
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This explanation provides you a comprehensive argument relating to Comparative Advantage.
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Suppose that the supply sides of France and Italy are each described by a simple Ricardian model with two goods, A and B. The technology is as follows.
A B Labor
France 4 2 200
Italy 2 4 200
Who has a comparative advantage in what? Who has an absolute advantage in ...
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