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Question
Use the following scenario to answer the following questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
By the principle of comparative advantage, Natasha should specialize in producing
a. both cheese and houses.
b. cheese.
c. houses.
d. neither cheese nor houses.
e. a little of both goods.
Answer
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Related questions
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