Suppose that the Winkies and the Munchkins are initially identical in terms of their abilities to produce

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Suppose that the Winkies and the Munchkins are initially identical in terms of their abilities to produce a wide variety of goods, including food and automobiles. One day, the Munchkins discover a new, cheaper way to make automobiles. True or False: This puts the Winkies at a comparative disadvantage and therefore makes them worse off.

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