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-Refer to the graph showing the production possibilities for two countries, A and B.Which statement is correct?

Question

Quizplus · Accepted Answer

Both countries would gain from specializing in and trading the good that they have a comparative advantage in. Country A has a comparative advantage in producing tractors, while Country B has a comparative advantage in producing coffee. By specializing in these goods, both countries can produce at a lower opportunity cost and trade with each other, resulting in both countries being able to consume more of both goods.

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