In the text, U.S. and Mexico specialize in the production of corn and oil, respectively. They trade and both end up with more corn and oil. How much each gains from tradedepends on
A) who has the comparative advantage
B) who has the absolute advantage
C) how efficiently the U.S. and Mexico produce corn and oil
D) the import/export ratio
E) the price of oil in terms of corn
Correct Answer:
Verified
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