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Comparative and absolute advantage,
Country Bushels of Grapes Computers
Italy 100 300
Canada 150 600
Using this scenario, can you explain to me...
Who should specialize and in what?
Who has an absolute advantage and in what?
Who has a comparative advantage and in what?
What is the opportunity cost for Italy if they only produce 1 bushel of grapes? What about 1 computer?
How could we get the greatest output of both?
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