Business, 18.02.2020 03:25 Alexmills6093

Arboc can produce a maximum of 60 units of goat yogurt while Arbez can produce a maximum of only 40. Arboc and Arbez can each produce a maximum of 20 units of apples. Each country has constant costs. The two countries trade with each other according to the Law of Comparative Advantage. We can conclude that Arboc has a comparative advantage in and Arbez has a comparative advantage in:

a. neither good; both goods
b. goat yogurt; apples
c. both goods; neither good
d. apples; goat yogurt

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Arboc can produce a maximum of 60 units of goat yogurt while Arbez can produce a maximum of only 40....

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