Finally it is assumed that specialization in the production of one particular

Finally it is assumed that specialization in the

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Finally, it is assumed that specialization in the production of one particular good does not result in gains in efficiency. But we know that specialization results in increased knowledge of a task and perhaps even future improvements in how that task is performed. Thus, the amount of resources needed to produce a specific amount of a good should decrease over time. 64) How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.
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