-In Table 17.4

Name: -In Table 17.4
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-In Table 17.4

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The United States having an absolute advantage in both goods means it can produce both goods more efficiently than Brazil. However, it having a comparative advantage in cars only suggests that it has a lower opportunity cost in producing cars compared to lumber, making it more advantageous for the U.S. to specialize in cars, while Brazil, by implication, would have a comparative advantage in lumber.