If Country A has an absolute advantage in the production of two goods compared to Country B,

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If Country A has an absolute advantage in the production of two goods compared to Country B, then it is not in Country A’s best interest to trade with Country B. True or false? Explain.

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:35 AM

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If Country A has an absolute advantage in the production of two goods compared to Country B,

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This statement is false A country can have an absolute advantage in the production of all go...View the full answer

Microeconomics

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