Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 24 - International Trade - Discussion Questions: 4

Answer

The answer is below.

Work Step by Step

Country A should produce product X because it has an advantage in producing this product over the other country. After all, this is the idea behind trading: countries that are more able to make one product trade with those more able to make a different product.
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