Question: Given the US and Canada and two goods, bread, and butter, to be produced. If the US is better at both by exactly fifty percent,

Given the US and Canada and two goods, bread, and butter, to be produced. If the US is better at both by exactly fifty percent, then invoking comparative advantage, determine which country should produce and export which good.

Group of answer choices

There are no basis for trade between the US and Canada

The US should produce and export butter

Canada should produce and export butter

Canada should produce and export bread

The US should produce and export bread

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