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From course:

Economics A Level (DONEEEEEEE)

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Question:

In a Scenario where Country A has an Absolute Advantage in Chocolate, and County B has an Absolute Advantage in Chips, how could both these Nations get the Maximum Output

Author: eric_galvao



Answer:

-If Countries A and B have their Goods they have an Absolute Advantage, then they should shift their Production, and Specialise in that Good. -The Outcome would be that Total Output would Rise, as its Resources are being used in the Most Efficient way.


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