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If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory: Group of answer choices A. Ecuador should focus production on coffee, trade on wheat and export its surplus of coffee. B.Argentina should focus on producing coffee because its a scarce resource. C.Both answers are correct.

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EmranUllah EmranUllah

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Answer:

Option- A

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory, Ecuador should focus production on coffee, trade on wheat and export its surplus of coffee.

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