Use the 4-step process to find the comparative advantage and the gains from and trade. What is David's comparative advantage? specialization A. Coconuts B. Pineapples C. Both D. Neither Tina Coconuts 100 50 Pineapples 0 25 50 David Coconuts 50 25 0 Pineapples 0 40 80

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.