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Business, 13.02.2020 04:29 crawford184232323234
Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?
A. Both countries could gain from trade with each other.
V. Neither country could gain from trade with each other because Cornland has an absolute advantage
in both goods.
C. Oatland could gain from trade between the two countries, but Cornland definitively would lose.
D. Neither country could gain from trade with each other because neither one has a comparative
advantage.
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,...
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