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svetlana [45]
3 years ago
13

In answering the question, you should emphasize the line of reasoning that generated your results, it is not

Advanced Placement (AP)
1 answer:
Verdich [7]3 years ago
7 0

Based on the information given, it can be noted that Country Y has an absolute advantage in the production of solar panels.

<h3>Absolute Advantage.</h3>

In this case, country Y can produce more solar panels than country X. Therefore, it has an absolute advantage.

The opportunity cost of a furnace in Country Y will be 2 solar panels per furnace. This is what has to be foregone.

Also, it should be noted that country X has a comparative advantage in producing furnaces.

Lastly, when the terms of trade were that 2 furnaces are exchanged for 1 solar panel, Country X should produce solar panels domestically.

Learn more about absolute advantage on:

brainly.com/question/8141905

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