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If the US Could Produce 5 Televisions Per Hour of Labor and Labor

Question 107

Essay

If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production?
Explain your answer using the concepts of comparative and or absolute advantage.

Correct Answer:

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No. Although the U.S...

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