Using all their resources efficiently, country X can produce 6 million tonnes of wheat or 2 million tonnes of steel whilst country Y can produce 4 million tonnes of wheat or 1 million tonnes of steel.
Based on this information, what does the theory of comparative advantage suggest?
Country X should produce only steel.
2 )
Country X will not gain from international trade.
3 )
Country Y has no comparative advantage.
4 )
Country Y will not gain from international trade.
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