Suppose there are two countries in the world, Nation A and Nation
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_| |_ Assignment Two Suppose there are two countries in the world, Nation A and Nation B, both nations canproduce two kinds of products, cloth and wine, and labor is the only input factor in theirproduction. And their production situations are shown with figures in the following table. Nowplease use the following figures to illustrate how the absolute advantage theory works. Output of Labor units required in Labor units required inclothtunit) the production of one the production of oneunit of cloth unit of wine Nation A ________I_
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