Essay
Suppose a worker in Bolivia can produce 5 shoes per day and a worker in Chile can produce 1 shoe per day. The analogous figures for rings are 15 per day and 5 per day. Show and explain which country has an absolute advantage in which products. Explain which country has a comparative advantage in which product?
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Bolivia has an absolute advantage in bot...View Answer
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Correct Answer:
Answered by ExamLex AI
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