Two countries: US and Mexico. Two goods: Airplane and car. A US worker's MPL is 20...

Two countries: US and Mexico. Two goods: Airplane and car. A US worker's MPL is 20 times higher than a Mexican worker in making an airplane. A US worker's MPL is 5 times higher than a Mexican worker in making a car. Which country has absolute advantage in making cars and why? Which country has comparative advantage in making cars and why?

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Rahul Sunny answered 2 years ago

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