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Business, 18.02.2020 00:55 oranzajimenez

Suppose that France and Germany both produce fish and olives. France's opportunity cost of producing a crate of olives is 4 pounds of fish while Germany's opportunity cost of producing a crate of olives is 10 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that has a comparative advantage in the production of olives and has a comparative advantage in the production of fish.

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