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Assume that a world has only 2 countries (Country A and Country B) and 2 commodities (X and Y) with the data provided in the table below.

Commodity Country A Country B
Commodity X (product/hour) 3 1
Commodity Y (product/hour) 3 3
1. Which commodity should be exported by which country? Explain your answer?
2. What is the range for mutually beneficial trade between two countries?
3. Draw the production possibility frontier of two nations

Answer :

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